Liz McManus (Wicklow, Labour)
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Question 385: To ask the Minister for Enterprise, Trade and Employment if, in view of the statement by the Taoiseach that Greencore should honour the ruling on payments to the employees, he will honour the ruling on redundancy payments to IFI workers in view of the fact that the Government closed the company and were 51% shareholders; and if he will make a statement on the matter. [41513/06]

Micheál Martin (Cork South Central, Fianna Fail)
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Following the decision by the Board of IFI to put the company into liquidation, ICI and the State, the shareholders in IFI, while there was no legal obligation to do so, established a special fund with almost €24.5 million to provide ex-gratia severance payments to the former employees of IFI. Payments from the fund were made were in accordance with the basis for distribution determined by the trustee of the fund, which was endorsed by a ballot open to all employees. These payments were in addition to statutory redundancy entitlements which were also paid.

In addition, the liquidator has admitted, as unsecured creditors in the liquidation, claims from the employees of the company to have entitlements in respect of the voluntary severance terms traditionally paid by the company. However, the dividend payable to the workers concerned, if any, can only be determined when all the assets of the company have been realized and all liabilities established. It must be emphasised, of course, that the amount, if anything, to be paid in due course in respect of such claims is a matter solely for determination by the liquidator.