Jan O'Sullivan (Limerick East, Labour)
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Question 145: To ask the Minister for Enterprise, Trade and Employment the status of investigations by the Director of Corporate Enforcement, the Employment Appeals Tribunal and any other agencies under the aegis of his Department into the liquidation of a company (details supplied) and subsequent creation of another company; if the situation has been resolved to his satisfaction; his views on new legislation that will be required to prevent this situation recurring; and if he will make a statement on the matter. [2529/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Section 56 of the Company Law Enforcement Act 2001, requires a liquidator of an insolvent company to submit a report to the Director of Corporate Enforcement within 6 months of their appointment. Liquidators are also obliged to bring High Court proceedings for the restriction of the directors of such companies within 5 months of receipt of such reports, unless relieved of that obligation by the Director.

In relation to the company mentioned, I have recently been informed by the Director that he has temporarily relieved the liquidator of the obligation to take restriction proceedings pending receipt of a further report from the liquidator to be submitted in two month's time. This form of decision is, I understand, usually made when the liquidator's enquiries have not yet reached a point where he is in a position to make a firm recommendation on the appropriateness of proceedings with a restriction application. In such cases where a further report is requested and submitted the obligations and time periods set out in section 56(2) apply again.

The role of the Employment Appeals Tribunal arises from claims referred to my Department by the liquidator of the Company concerned on behalf of the employees for arrears of wages, holiday pay and other entitlements for payment from the Social Insurance Fund under the Insolvency Payments Scheme. As the circumstances of the insolvency gave rise to a doubt as to whether the claims could be paid under the scheme, the question was referred to the Tribunal under Section 9(3) of the Protection of Employees (Employers' Insolvency) Act 1984 for a decision on the matter. A full hearing by the Tribunal was scheduled for 14 December 2006, but the Tribunal on that date adjourned it until 21 March 2007. The Employment Appeals Tribunal is independent in the performance of its functions and it would not be appropriate for me to comment further at this stage.

As regards new legislation relating to "phoenix" situations, I would draw attention to the changes introduced by Part 5 of the Company Law Enforcement Act, 2001 which address problems and issues connected with business failure.