Bernard Durkan (Kildare North, Fine Gael)
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Question 169: To ask the Minister for Enterprise, Trade and Employment the position in relation to an application for redundancy and other payments in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [32848/07]

Billy Kelleher (Cork North Central, Fianna Fail)
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P.S.K. Construction Ltd (PSK) went into voluntary liquidation on 16 March 2006 and Mr Tom Kavanagh of Kavanagh Fennell was appointed liquidator. Claims for arrears of wages, holiday pay and minimum notice under the Insolvency Payments Scheme were received on behalf of one hundred and forty-six employees from the liquidator during May and June 2006. (In addition, twenty-two claims were received for redundancy lump sum payments).

In the course of processing the claims, as the apparent circumstances of the insolvency gave rise to a doubt as to whether these were debts that should be paid under the Insolvency Payments Scheme, the question was referred to the Employment Appeals Tribunal in June 2006 under Section 9(3) of the Protection of Employees (Employers' Insolvency) Act 1984 for a decision in the matter. The issue concerned the question of whether a transfer of undertakings under the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 might have taken place between P.S.K. Construction Ltd (PSK) and P.L.K. Plant & Equipment Hire Ltd (PLK) — the employees' new employer.

The Tribunal's decision of 24 October 2007 is that the employee claims are not allowable as there was a transfer of undertakings from PSK to PLK. The liability for the employees' unpaid entitlements therefore transferred to PLK.

The Department wrote to the liquidator formally refusing the claims and advising that the employees pursue their claims against PLK.

Payment of Statutory Redundancy is a matter in the first instance for the employer. In this case, the Employment Appeals Tribunal found that there was a transfer of undertakings from PSK to PLK and, accordingly, any statutory redundancy payments are the responsibility of PLK, and the liquidator has been so informed.