Charles Flanagan (Laois-Offaly, Fine Gael)
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Question 36: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will honour the commitment to allow employers to offset against tax, a redundancy scheme refund, that has not been paid by her; and if she will make a statement on the matter. [27557/09]

Conor Lenihan (Dublin South West, Fianna Fail)
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At the Tánaiste's instigation, the Department engaged with the Revenue Commissioners to facilitate businesses experiencing particular difficulties in meeting tax payment obligations because of a delay in receiving rebate repayments from the redundancy payments section of the Department. Where agreement is forthcoming with the employer and, subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring for a reasonable period collection or enforcement action that would otherwise ensue in the event of delayed payment of tax.

Since putting this administrative arrangement in place, my Department has received a significant number of requests from companies indicating consent to payment of the redundancy rebate they would otherwise be entitled to in favour of the Revenue Commissioners, where an outstanding tax liability exists. Revenue has agreed to consider these on a case-by-case basis.

Leo Varadkar (Dublin West, Fine Gael)
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This is broadly the same as Deputy English's question so I will not detain the House. Has consideration been given to allowing an offset against employer's PRSI and VAT payments where that is relevant, in addition to what is being done?

Conor Lenihan (Dublin South West, Fianna Fail)
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We are working with Revenue on that matter. There has been significant interest in this but the scheme has been operating for only two months. Thanks to the Minister's good intervention several hundred people have availed of the scheme in that period.

Willie Penrose (Longford-Westmeath, Labour)
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I raised this last April and advocated that the Department contact the Revenue to set up this scheme. Can letters of comfort be provided not just for the Revenue but also for a business to say that the money, whether €6,000 or €8,000, is due? Small companies could show that to the banks in order to release another few euro.

Conor Lenihan (Dublin South West, Fianna Fail)
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I am sure that the Revenue Commissioners will consider that and we will suggest that if such communication is vitally needed to keep a business going it should show that flexibility.