Ruairi Quinn (Dublin South East, Labour)
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Question 123: To ask the Minister for Enterprise, Trade and Employment the reasoning behind the Government's decision to fund a redundancy package at Irish Ferries; his views on whether the workers in question were legitimately made redundant, or if their jobs still exist; the action he will take to ensure that taxpayers' money is not used to assist companies in the race to the bottom; if this matter was discussed with the social partners before a decision was made; and if he will make a statement on the matter. [2750/07]

Micheál Martin (Cork South Central, Fianna Fail)
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The payment of statutory redundancy to employees is a matter, in the first instance, for the employer. My Department is responsible for ensuring that statutory redundancy is paid to all employees who find themselves in a redundancy situation and who, by reference to age, insurability and length of service are deemed eligible for such payment. Ex gratia payments, that is, payments over and above the statutory entitlement are a matter for negotiation between employer and employee or by union representatives or other agreed representatives acting on their behalf.

Statutory redundancy was paid to all eligible workers at Irish Ferries and the company subsequently applied for a rebate under the statutory redundancy scheme on 17 February 2006. Employers who pay statutory redundancy to employees in a genuine redundancy situation are entitled to recoup 60% of the moneys so paid from the social insurance fund.

When the application was received in my Department, it was examined in detail in accordance with normal procedure. Such examination gave rise to doubts as to the eligibility of the application under section 7 of the Redundancy Payments Acts 1967 to 2003. Accordingly, the issue of eligibility was referred to the Office of the Attorney General for legal advice. A number of complex legal issues arose at several stages during the consideration of this matter which required further information to be sought from Irish Ferries. The matter was considered in detail on the basis of the legal advices received and on the facts of the case and it was determined that Irish Ferries was legally entitled to receive a rebate in accordance with the Redundancy Payments Acts 1967 to 2003.

All decisions to pay a redundancy rebate must be based on the facts of the case and on the Redundancy Payments Acts 1967 to 2003. There is no room for the exercise of ministerial preference or the consideration of matters extraneous to the redundancy legislation.

The protection of employment — exceptional collective redundancies — Bill, as negotiated in the context of Towards 2016, is at an advanced stage of drafting. The Bill will address cases of collective redundancies where specific situations apply and provide for the extension of unfair dismissals protection in circumstances where all employees are involved in dismissal following a strike. It is expected that the Bill will be published in a couple of weeks.

Ruairi Quinn (Dublin South East, Labour)
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I thank the Minister for his reply. Does he accept that there were no redundancies in this case? What happened was that the jobs in question were sold to people from other countries who were prepared to work at a lower rate. In logical terms and in light of the facts the Irish Seamen's Union, ISU, agreed, under pressure and coercion, to allow their members to sell their jobs in return for a package, valued at €4.3 million, that was administered out of the fund into which everyone pays. The package to which I refer was paid out in respect not of people who lost their jobs but those whose jobs were sold to individuals who undertook to work at a lower rate. In terms of the facts, do I have it wrong or is that a fair presentation of what actually happened?

Micheál Martin (Cork South Central, Fianna Fail)
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That is the Deputy's analysis of what happened.

Ruairi Quinn (Dublin South East, Labour)
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The Minister referred to facts.

Micheál Martin (Cork South Central, Fianna Fail)
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I heard the Deputy's questions.

Ruairi Quinn (Dublin South East, Labour)
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It is not my analysis.

Micheál Martin (Cork South Central, Fianna Fail)
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I also have personal views on the matter. I was particularly unhappy with what transpired. However, I cannot allow my personal preferences or instincts to impact on the legal entitlement as per the existing legislative framework. We must, therefore, rely on the law as it stands. We have taken steps in our discussions with the social partners to remedy what could be considered deficiencies in the legislation.

This will result in new legislation to cover collective redundancies of this kind. It will involve the establishment of a redundancy panel and provide for a statutory consultation process. The legislation will establish roles, responsibilities and timeframes for the Minister, the Labour Court and the redundancy panel. It will provide for situations where dismissals take place contrary to an opinion of the Labour Court, with particular reference to redundancy rebate entitlements, as well as consideration of unfair dismissal entitlements, penalties and appeals. We are moving to close certain gaps that have opened up with this issue. Our decision on the legislation must be based on the legal advice we have received and not on how we might like it to be or in terms of our own political preferences.

Ruairi Quinn (Dublin South East, Labour)
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I take it from the Minister's reply that he is not disputing my facts. The jobs were sold and the employees were not made redundant. The compensation element of the redundancy package — the 60% of the cost of buying out the Irish Ferries workers — was paid for by the rest of us. The Minister claims he received legal advice, presumably from the Attorney General. I invite the Minister to publish it. We must take his word for it, which I do, but we have not seen the advice. On 12 January, my party leader wrote to the Taoiseach, himself a former Minister for Labour, asking that the advice be published.

The deal is done and the damage cannot be undone. However, the Minister referred to the loophole that was exploited in this case which he is attempting to redress with less than 100 days between now and the next general election. Publishing the legal advice will allow us to test its robustness.

Micheál Martin (Cork South Central, Fianna Fail)
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Irrespective of the language the Deputy uses, the redundancies were negotiated by representatives of the workers.

Ruairi Quinn (Dublin South East, Labour)
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The jobs were sold under duress.

Micheál Martin (Cork South Central, Fianna Fail)
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There can be many different perspectives on this issue.

Ruairi Quinn (Dublin South East, Labour)
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Up to 100,000 people marched on the streets of Dublin because of it.

Micheál Martin (Cork South Central, Fianna Fail)
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I have been through it at all ends. The redundancy package was negotiated. I understand the Taoiseach replied today to the Deputy's party leader's correspondence on the matter. There is a long-standing precedent on the publication of the legal advice of Attorneys General, of which the Deputy is aware having been a Minister. We have been in discussions with the social partners. The heads of the Bill have already been published and it is intended to have it enacted prior to any event later this year.

Finian McGrath (Dublin North Central, Independent)
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I blame the Minister of State, Deputy Haughey.

Ruairi Quinn (Dublin South East, Labour)
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Ten-nil to Irish Ferries.