Dáil debates

Thursday, 13 November 2025

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Company Closures

2:25 am

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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5. To ask the Minister for Enterprise, Trade and Employment the supports his Department is providing to companies impacted by the receivership announcement of a company (details supplied) to prevent further closures and job losses; the steps his Department is taking to ensure the packages held by the company are delivered to their owners; and if he will make a statement on the matter. [62267/25]

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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I want to speak further about Fastway because there is so much to be spoken about. The Minister knows that Fastway is built on a network of local franchisees and subcontractors, many of whom have been the backbone of parcel delivery in rural and regional Ireland. These are small family-run operations which have invested heavily, some of them up to €70,000 in recent months, in vehicles, equipment and staff. That has been based on trust in the system. They worked hard during the pandemic to deliver items to homes in lockdown. Many of them are owed significant sums of money, with no clarity on whether they will ever see it. They are left in limbo too.

2:35 am

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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I thank the Deputy for this very important question. It relates to a matter which is very close to my heart due to the fact that there is a depot in Mullingar. I very much understand the business model and the pressures that employees and their families face as a result of what happened.

Receivership is a long-standing legal mechanism for the enforcement of a security. Usually in Ireland, a receiver is an individual appointed by a lender, such as a bank, to take control of company assets that were used as security for a loan. In general, a receiver’s primary function is to secure the assets of the company, which have been mortgaged or charged in favour of the security holder who appointed him or her, and realise those assets in order that the secured creditor’s debt is repaid as quickly and efficiently as possible.

Creditors, including other businesses and self-employed contractors impacted by the receivership, should contact the receivers to submit proof of debt and file a claim regarding unpaid moneys and invoices. Revenue has confirmed that it will work with individual couriers and businesses and will be pragmatic in its approach where businesses experience cash-flow difficulties as a result of the loss of business or payments. Businesses experiencing cash-flow issues as a result of these developments may wish to also contact the national enterprise hub in our Department, which provides a wide rang of supports and is a central, all-of-government service to assist businesses.

The Department of Social Protection provides a number of welfare supports and is also on hand to assist. If a person is self-employed as a franchise holder or contractor, they may qualify for the self-employed jobseeker’s benefit if they satisfy PRSI contribution conditions. They can also apply for basic supplementary welfare allowance as an interim payment while their application is being processed, subject to normal eligibility criteria. An employee of a franchise holder or a self-employed contractor who is impacted by the receivership, for example, by being put on temporary lay-off, may apply for jobseeker’s pay-related benefit or jobseeker’s allowance, depending on their PRSI record and means.

Neither I nor my Department have any responsibility in the treatment of packages held by the Nuvion group. Such transactions are a matter between the parties under contract law. I reiterate that any affected businesses should engage with the receivers.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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Some of that information is useful. I thank the Minister for it. I commend my colleagues Senator Maria McCormack and Councillor Claire Murray who are working in the Laois area and who pulled together all the agencies last week to try to get as much information as possible for people. This is not just a commercial issue; it is about jobs and livelihoods. Every unpaid franchisee and subcontractor struggling to keep afloat represents a potential job loss and another business at risk.

I want to ask the Minister about the packages. He stated that they are not his responsibility, but many small retailers and online sellers have valuable stock that is tied up and that cannot be delivered to their customers. For some, this could represent a critical portion of their Christmas trade. We need to do something to protect those people's jobs. Some of these businesses went to an Post but it stated that it cannot manage the deliveries they need. We are coming into a critical period during which small businesses make a lot of their money.

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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I am fully aware of the gravity of the situation, particularly for franchisees and small self-employed contractors. The delivery of parcels is a matter of contract law. Delivery timelines relating to orders and the position regarding refunds are very much set out in consumer legislation and, from the point of view of the businesses involved, contract law. I have mentioned this matter to my colleague the Minister, Deputy O'Brien, from a transport perspective. An Post has absorbed some of the capacity, but there are also other providers in the marketplace. This is a challenge, but, critically, the matter is governed by contract law.

There are a number of other opportunities with existing providers for self-employed people and those who are involved in the franchise part of the business. A number of companies have taken some workers on, which is very important. It is key for workers and self-employed people to know that once they do not resign, their entitlement to redundancy, accrued wages and accrued holiday pay - this is important in the context of the consultation period - will not be affected.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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This incident once again highlights the vulnerability of small operators when large logistic firms collapse. We need to examine the environment in which some companies are allowed to operate. Employees and those who are dependent on them, like subcontractors, need to be notified about what is happening at a very early stage. Earlier, the Minister referred to the fact that we need better corporate law and the ability to investigate, particularly where companies are owned by foreign investment funds. We need to have some way of ensuring that businesses that operate in this State do so in a responsible manner to their employees, the environment and the State. I urge the Minister to treat this not just as a single case of corporate insolvency but also as a wider economic risk and one that could hit hundreds of workers, drivers and small enterprises across the country.

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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There are huge challenges in our economy in respect of the turnover of jobs, which I, as Minister, can see. There is huge opportunity, but there is also a turnover of jobs every week. The Government is acutely aware of this and is supporting employees through it.

It is clear that the Corporate Enforcement Authority is responsible for policing company law. If there any issues, they should be reported. We have a very strong statutory context that underpins the operation of companies in this State. An Garda Síochána has responsibility in respect of other matters that have been raised and that should be reported. There have been reports in the media about this issue as well.

Critically, we are here to support the workers, the contractors and franchisees. We will do everything we can to ensure that they are paid. This is a particularly important period for families. It can be very challenging. We will be there to support them with urgent payments. I am aware of the challenges many families face because I meet them at my clinics every week. The Government will not be found wanting in the context of supporting them at this difficult time. I assure those involved that training will be provided as well and that they are living in an economy of opportunity. There are opportunities, so they should not lose hope.