Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context

Question 18: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the problems created for small and medium sized enterprises which have been forced to make employees redundant as a result of the recession because of the delays in processing applications for the rebate of 60% of the statutory redundancy payments to which they are entitled; if she will confirm that applications made in October 2008 have not been dealt with; the steps she is taking to ensure that applications for rebates are dealt with promptly; and if she will make a statement on the matter. [14231/09]

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

The Tánaiste and I are acutely aware of the difficulties which the inability to deliver an acceptable turnaround of redundancy rebate payments is giving rise to for both individual employees and the business community and together, we are taking steps to address the issues.

The huge increase in the number of Redundancy Payment claims lodged with the Redundancy Payments Section of my Department in the latter part of 2008 and, to date in 2009 is unprecedented and is giving rise to delays in the processing of redundancy payments for individuals and companies within a reasonable timeframe. The scale of the challenge is evident from the statistics which indicate that, as at 1 April 2009, the number of new claims lodged with my Department was 20,798 which is more than 50% of the entire level of applications lodged for the whole of 2008 i.e. 40, 607. The number of claims received is averaging 1,600 per week.

Because of the huge surge in the number of claims received in Redundancy Payments in 2008, customer service targets have slipped as existing staff levels are insufficient to cope with such a massive increase in claim numbers. I can confirm that applications made online for rebate payments dating from early November 2008 are being processed and from October 2008 in respect of claims filed manually.

Since the start of the year, I have re-allocated an additional 15 persons to the Redundancy Payments Section and a further re-allocation of staff is due to be made in the next couple of weeks.

In addition, I have just introduced a new temporary arrangement so that the dedicated information centre of the National Employment Rights Authority (NERA) will be able to give out better and more up-to-date information to callers about the status of their applications. This will ensure that staff in the Redundancy Payments area of operation will be able to focus fully on and prioritise the most important aspect of the task, the actual processing of claims.

I can assure the Deputy that this matter is under constant review in my Department and that every effort is being made to deal with an increasing backlog in an attempt to ensure that claimants get the best possible service at, what is for them, a very difficult time.