Arthur Morgan (Louth, Sinn Fein)
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Question 83: To ask the Minister for Enterprise, Trade and Employment if he will meet with former workers at the Irish Fertilizer subsidiary Richardson's in Belfast who received inferior severance packages, particularly with respect to pensions following the closure of that plant, compared to their counterparts in other plants (details supplied) which closed at the same time. [12174/05]

Micheál Martin (Cork South Central, Fianna Fail)
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When Irish Fertilisers Industries Limited went into liquidation, ICI and the State, the shareholders in IFI, established a special fund — while there was no legal obligation to do so — of almost €24.5 million to provide ex gratia severance payments to the former employees. Payments from the fund were made in accordance with the basis for distribution determined by the trustee of the fund, which has been endorsed by a ballot open to all employees. The basis for distribution was the same for all employees regardless of location.

In addition, employees would have had certain statutory redundancy and other entitlements. While these would have varied somewhat reflecting the different arrangements in the two jurisdictions, I do not believe that this resulted in any significant variances in overall severance packages received.

As regards pensions, I am aware that employees based in Belfast, who are deferred pensioners of the Richardson's pension fund, are likely to receive much reduced pension entitlements and that the staff in question are, understandably, very aggrieved about this position. The specific financial position of the Richardson's fund appears to have arisen primarily from a combination of the statutory rules which currently apply on the winding up of a pension fund in the UK and a shortfall in the assets of the Belfast fund compared with its liabilities as a result of the fund trustees' investment strategy coupled with a significant fall in the equities market.

The trustees of the Richardson's scheme submitted a claim on the liquidation in relation to the shortfall in the scheme and I understand that the liquidator has now accepted, in principle, that the trustees have an admissible claim. However, there are a number of factors that will need to be determined before the amount of the claim that is admissible can be established. In addition, I understand that the UK Government has announced proposals to deal with the issue of pension shortfalls arising from insolvencies but I am not aware of the impact, if any, this may have on the shortfall in the Richardson's scheme. Depending on the outcome of both these developments, there is the prospect of some alleviation in the position faced by the active members of the Richardson's scheme.

While I have the utmost sympathy for the plight of the members affected by the shortfall that has arisen in the scheme, I am satisfied that the Irish Government does not have any obligations in respect of the shortfall which the pension scheme faces and I do not see any basis on which we could reasonably be expected to make good the shortfall involved. In the circumstances, I regret that I do not consider a meeting with former workers of IFI in Belfast is appropriate.