Tony McCormack (Offaly, Fianna Fail)
Link to this: Individually | In context

Before I begin, I want to extend my deepest sympathies to the family and friends of Noel Bourke. Noel was a former councillor in Edenderry and a former cathaoirleach of Offaly County Council who passed away last week. Noel was a dedicated public representative and a proud community man. His passing is a great loss to Edenderry and the county of Offaly. Ar dheis Dé go raibh a anam.

I raise the issue of the closure of the courier company Fastway, which has caused enormous hardship for employees and franchise owners right across the country. My office and I have been in contact with many of those directly affected since the closure and what we have heard is deeply troubling. Over the past two years, conditions within the company have clearly deteriorated and many people now question whether the takeover of Fastway in 2022 was a case of vulture capitalism and whether fraud or serious mismanagement was involved. Franchise owners and employees have described a situation that became more chaotic and unfair as time went on, with invoices going missing, payments being delayed or held back and commissions not being paid at all. Many were struggling just to keep their businesses afloat while waiting on money that never came. I have also been told of polygraph machines, that is, lie detector machines, being used in franchise interviews and of large cash payments being requested as part of the purchase process, raising serious questions about transparency, legality and oversight.

What is particularly cruel is that franchisees who only joined the company recently had made large financial investments, often borrowing heavily or using personal savings to buy into what they believed to be a growing business. They are now left with huge losses and no way to recover the money. One franchise owner I spoke to is now facing personal insolvency. He is owed around €50,000 by the company and owes roughly the same amount to Revenue. He had been in the process of selling his franchise earlier this year, hoping that a busy Christmas and new year period would allow him to clear his debts and move on. Instead, with the closure, he is left with nothing but debts. This is increasing stress and his livelihood is gone.

The more I hear about how the system was run, the more it sounds like a pyramid scheme. In fact, it sounds like something you would see in a Netflix documentary rather than in a modern Irish business. Both employees and franchise owners have been left abandoned without pay, without recourse and without clarity. Will the Tánaiste tell us whether there is currently any investigation under way into the management, ownership and conduct of Fastway since its takeover in 2022? If there is not, will he push for one to be launched to establish the facts, to hold those responsible to account and to ensure justice?

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

I join with Deputy McCormack in extending my sympathies to the family of the late Noel Bourke. We think of his family today. I also think of a former colleague of mine, the former councillor Jim Finucane from Kerry, who passed away in recent days. People who serve at local government level are the essence of public service and they do our democracies, parties and traditions proud. We think of their families today.

I thank the Deputy for raising the really important matter of Fastway, receivership and jobs in the sector, which is of huge concern in Offaly, to put it mildly. My thoughts, along with those of the Deputy and everybody in this House, are with all of those affected by the receivership. This news is extremely concerning. The Deputy has given us tangible examples of the human impact of this issue. It is hugely concerning for all involved. While there is never a good time for something like this to happen, it comes at a particularly difficult time of the year. The Deputy has made a number of very important points on behalf of his constituents. I very much respect that. I will not comment too much for fear of affecting processes that are in place or that could be put in place in due course. I would not want to cut across the independence of such processes. However, I will make sure that the Deputy's comments are brought directly to the attention of the Minister, Deputy Burke, and the Minister of State at the Department, Deputy Dillon, who is here with me today. I will make sure that all of those matters are considered in an appropriate manner.

Receivership is a long-standing legal mechanism for the enforcement of a security. It is important to note that receivers are independent in the execution of their roles and neither the Government nor a Minister can intervene in such matters. The Department of Social Protection is now engaging directly with the receivers and the affected employees to provide them with necessary information and support at this time. There are robust protections in place for employees of an insolvent employer and it is important that these are made clear to everybody involved. The receivers submitted a collective redundancy notification to the Department of Enterprise, Tourism and Employment on 31 October. I understand the receivers are currently undertaking the 30-day consultation with the employees' representatives required by law. The State will guarantee eligible employees statutory redundancy and certain outstanding wage entitlements via the redundancy and insolvency payment schemes. These schemes pay impacted workers a maximum of €600 per week for up to eight weeks where arrears are due in wages, holiday pay or minimum notice entitlements. Other creditors, including self-employed contractors, should make contact with the receivers in order to submit proof of debt and to file a claim regarding unpaid moneys. I just wanted to put those issues on the record of the Dáil.

The Government, the Minister, Deputy Burke, and the Minister of State, Deputy Dillon, will continue to monitor this very closely. We will continue to work with Deputy McCormack and the other Oireachtas representatives from Offaly in the time ahead.

Tony McCormack (Offaly, Fianna Fail)
Link to this: Individually | In context

It is great to hear of all the services the Government will provide and that it is working with the employees and franchise owners. I suppose the franchise owners are left on their own. There is not an awful lot of help for them. Unfortunately, in a lot of cases, they are not able to apply for social welfare payments. Given the scale of the collapse and the severe impact on employees and especially on franchise owners, many of whom have lost their livelihoods and are now facing debt and insolvency, will the Government consider establishing a support mechanism or emergency relief fund for those affected?

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

I will certainly speak to the Minister, Deputy Burke, in relation to this. Such is the sensitivity and importance of the issue, I want to make sure all of these matters are considered thoroughly and appropriately. I will ask the Minister to engage directly with Deputy McCormack and other Offaly TDs on this matter. We are keen to provide as much support and assistance as we can in what is a very difficult time. Based on what the Deputy has said, I feel that more work will need to be done in relation to some of the important issues he has put on the record of the House today.