Jim O'Keeffe (Cork South West, Fine Gael)
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Question 33: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to combat inefficiency in her Department; the way in which she will speed up redundancy payment rebates to small businesses from her Department; the waiting time for such a payment; and if she will make a statement on the matter. [13551/09]

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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The significant increase in the number of redundancy payment claims lodged with the redundancy payments section of my Department in the latter part of 2008 and to date in 2009 is unprecedented and is giving rise to delays in the processing of redundancy payments for individuals and companies within a reasonable timeframe. The scale of the challenge is evident from the statistics which indicate that, at the end of the first quarter of 2009, the number of new claims lodged with my Department was 19,742, which equates to almost 50% of the entire level of applications lodged in 2008. It is equivalent to 78% of applications lodged in 2007. The number of claims received is averaging 1,600 per week. The Tánaiste and I are acutely aware of the difficulties which the inability to deliver an acceptable turnaround of redundancy rebate payments gives rise to for both individual employees and the business community. We are taking steps to address the issue.

Until mid-2008, our customer service targets for processing correctly completed redundancy claims were, in order of priority, four to six weeks for statutory redundancy lump sum claims to employees whose employers failed to pay the statutory entitlement; six weeks where claims were correctly submitted on-line; and ten plus weeks for manual claims sent in by employers. By and large these targets were met.

However, because of the huge surge in the number of claims received in redundancy payments in 2008, customer service targets have slipped as existing staff levels are insufficient to cope with such a significant increase in claim numbers. Actual timeframes being achieved are, in order of priority, between six and eight plus weeks for statutory lump sum payments to employees whose employers had failed to pay the statutory entitlement; 12 plus weeks for correctly submitted on-line claims; and 16 plus weeks for manual claims sent in by employers.

There has been a reallocation of an additional nine persons to the redundancy payments section since the start of the year and I have identified an additional 12 persons to be reassigned in the coming days and weeks. However, there is a limit to the number of people that we can reassign internally, because other areas of the Department are equally busy, for example, on labour force activation issues and in the employment rights bodies. Therefore, we are also in discussions with the Department of Finance to establish the extent of the scope for the assignment of additional staff, possibly from other Departments, as occurred in the case of the Department of Social and Family Affairs.

Additional information not given on the floor of the House.

One of the problems is that people — quite rightly — are concerned about their redundancy claims and are telephoning frequently to check on progress. While this is understandable, it is adding to the delays as it means that staff are tied up on phones and not processing the claims. Therefore, we are making arrangements such that the dedicated call centre of the National Employment Rights Authority will be able to give out better and more up-to-date information to callers about the status of their applications.

I assure the Deputy that this matter is under constant review in my Department and that every effort is being made to deal with an increasing backlog in an attempt to ensure that claimants get the best possible service at, what is for them, a very difficult time.

Leo Varadkar (Dublin West, Fine Gael)
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I welcome the announcement that the Minister of State intends to appoint more people to that section, which is important. However, the Government has made several commitments recently. It committed to paying its bills on time and to paying redundancy refunds on time, but these commitments are not being honoured. As a customer, the Government is putting businesses out of business, because it will not pay the money it owes for services provided within a reasonable timeframe, that is, between ten and 14 days, nor will it pay for redundancy refunds which are paid from employers' PRSI, let us not forget. They are refunds. As a result, more businesses are going to the wall and more jobs are being lost. Does the Minister of State accept responsibility for his Department's inefficiency and the fact that it is causing more people to lose their jobs in addition to those jobs the Government has already destroyed? Will the Government give a cast iron commitment or when will it honour its commitment to pay all its bills within 14 days? Who will resign if that commitment is not delivered?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I thank the Deputy for acknowledging that we have reassigned nine people. Between today and tomorrow, another six people will be reassigned to deal with the matter. We are very conscious of the fact that the redundancy payments should be met on time.

Leo Varadkar (Dublin West, Fine Gael)
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Will they be?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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Some of the staff are currently occupied by answering the telephone from people made redundant with understandable queries. I beg the indulgence of the House to say that if people have a query, they should telephone 1890 80 80 90 to get a generic reply.

Leo Varadkar (Dublin West, Fine Gael)
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Do you think they are listening?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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If they require a specific reply there is an e-mail address which will provide an immediate response and which I can pass on to the Deputy afterwards.

Willie Penrose (Longford-Westmeath, Labour)
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The people suffering most are those in small businesses. They are on their knees. Many such people have said that the Government is able to organise a bank bail out in days but they are still waiting. Those expecting payments from October and November are still waiting and the waiting period is significantly in excess of six weeks. I suggest the Minister——

Billy Kelleher (Cork North Central, Fianna Fail)
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I mentioned those small businesses already.

Willie Penrose (Longford-Westmeath, Labour)
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I will make a worthwhile suggestion. Any employer who has made staff redundant could offset the 60% refund due to them against any tax liability which arises, whether PAYE or whatever. This suggestion came from a business person. The Government should hand it over, because the Revenue is still putting pressure on small businesses. This morning I heard of a contractor in the building industry. He collected money from the sub-contractor. The process is circular and the money goes back into the same pot. Will the Minister consider the suggestion? I accept the Minister is trying to deal with the matter, but it will necessitate a significant number of staff. It will require more than the number mentioned by the Minister of State to deal with the current level, especially if redundancies keep coming through. Will the Minister consider that suggestion? There could be a payment offset against liabilities or any money due to the Revenue. The Government has the money in any case, so no one would go out of business. A 60% refund could be offset against PAYE, PRSI, capital acquisitions tax, capital gains tax, income tax or whatever else. Let us engage in forward thinking and join up those computers.

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I can inform the Deputy that has been agreed with the Chairman of the Revenue Commissioners.

Willie Penrose (Longford-Westmeath, Labour)
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I congratulate the Minister of State.

Mary Coughlan (Donegal South West, Fianna Fail)
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We are thinking ahead.

Leo Varadkar (Dublin West, Fine Gael)
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The Minister of State might have said as much in his reply.

Willie Penrose (Longford-Westmeath, Labour)
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I applaud when a job is well done.

Damien English (Meath West, Fine Gael)
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Questions have been asked many times regarding payments, but will the Minister of State get the message through to the various Departments and staff that businesses are under immense pressure? The UK immediately brought in a ten day rule, but we have not done so. We are doing quite well in some cases, but whenever there is any problem with red tape, a missing dot on an i or cross on a t, there are very significant delays throughout the Departments. Businesses are under very serious pressure. Get the message through to those doing the work for the Government that this is urgent. It is no longer a joke and it should not require Deputies to make phone calls to speed up payments, whether for social welfare, redundancies, grants or whatever else. It should not be necessary in the current climate. Everyone should have woken up to the position in which we find ourselves. There are problems and those employed by the Government could solve them if they moved at the necessary pace.

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I thank the Deputy for the suggestion. We are getting the extra staff and we are very conscious of the fact that the payments should be processed as quickly as possible.

Damien English (Meath West, Fine Gael)
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It applies throughout all Departments, not only the Department of Enterprise, Trade and Employment.