Tommy Broughan (Dublin North East, Labour)
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Question 388: To ask the Minister for Enterprise, Trade and Employment his views on an application from Irish Ferries for a rebate of statutory redundancy payments made to up to 500 former staff members in 2005; the amount the financial rebates would amount to; his views on whether this redundancy application is genuine in the context of the 500 staff members being replaced by outsourced agency workers; his further views on whether the Irish taxpayers should assist companies in outsourcing their workforce; and if he will make a statement on the matter. [31559/06]

Tony Killeen (Clare, Fianna Fail)
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The Department on 17th February 2006, 12th May 2006 and 4th September 2006 received three applications for a statutory redundancy payment from Irish Ferries under the Redundancy Payments Acts 1967 to 2003 amounting to approximately €4 million. These applications were submitted by means of the new redundancy on-line application system.

The matter was referred to the Attorney-General for advice on whether or not a genuine redundancy situation exists in this case and therefore, whether or not the rebate can be paid from the Social Insurance Fund. On receipt of this advice from the Attorney-General, a decision will be made on the issue.

It is the policy of the Government to pay a rebate only in situations where the strict criteria stipulating genuine grounds for redundancy under Section 7 of the Redundancy Payments Acts, 1967, as amended by Section 4 of the Redundancy Payments Act, 1971 and Section 5 of the Redundancy Payments Act, 2003, are applicable.

Statutory Redundancy Rebates are paid to employers who qualify under the provisions of the Redundancy Payments Acts 1967 to 2003 out of the Social Insurance Fund. Employers pay contributions to the SIF in respect of redundancy through the PRSI system.

As a result of the recent Social Partnership Agreement "Towards 2016", a proposal has emerged which is designed to address exceptional cases of compulsory collective redundancy.

Under this proposal, a new body to be known as the Redundancy Panel will be established through an amendment to the Protection of Employment Act 1977. The only function of this Redundancy Panel, having been requested either by employee representatives or the employer and having invited submissions from both parties, would be to request the Minister to ask the Labour Court to issue an opinion as to whether or not the proposed dismissals involve a collective redundancy proposal, on a compulsory basis with the planned replacement of staff by direct employees employed by the employer effecting the compulsory collective redundancy or the use of replacement workers by the employer. The establishment of the new body will be enshrined in new legislation due to be published in the coming months.