Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 67: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the timeframe for processing submissions by employers who apply for rebate on statutory redundancy; if her attention has been drawn to the delays in processing same; her views on permitting same to offset the refund due against tax liability due with immediate effect; and if she will make a statement on the matter. [22088/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The economic downturn has seen a huge acceleration in the number of companies forced to take measures to cut staff costs including that of making staff redundant. The unprecedented level of redundancies is placing huge demands on the Redundancy Payments Section of the Department in that, in the first five months of 2009 alone, the claims received represent also 88% of the total amount lodged in 2008 (40,607). This is significant in that 2008 was itself a year that saw a significant increase in claims when compared with previous years (2002-2007) during which the annual intake of claims averaged at 24,590. The number of claims received is now averaging in excess of 1,800 per week as against an average weekly level of less than 500 up to 2007.

While the significantly increased demands now placed on my Department presents huge challenges, I am equally acutely aware of the difficulties which the current temporary inability to process redundancy payments as quickly as we would like is giving rise to for individuals and the business community. A number of steps have already been taken and these are under constant review. Measures taken to date include: · the reassignment of 21 staff additional staff from other areas of the Department to the Redundancy Payments area since early 2009 with ongoing review of trends and demands; · the prioritisation of the Department's overtime budget towards staff in Redundancy Payments Section to tackle the backlog outside normal hours; · the establishment of a special call handling facility to deal with the huge volume of telephone calls from people and businesses who are naturally concerned about their payments, using the facilities and cooperation of the National Employment Rights Authority (NERA); · The provision of better quality information relating to current processing times on the Department's website. Currently the Redundancy Payments Section of my Department is dealing with rebate claims submitted on-line in December and those submitted manually in November. This is enabling the staff in the Redundancy Payments area to concentrate on and prioritise the processing of redundancy payment claims.

I have also been very concerned about the issue referred to in the Deputy's question about offsetting redundancy rebates due to employers against outstanding tax liability and I have taken measures to deal it. My Department has engaged with the Revenue Commissioners to facilitate businesses experiencing particular difficulties in meeting tax payment obligations because of a delay in receiving rebate repayments from the Department. Where agreement is forthcoming with the employer and, subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring for a reasonable period collection or enforcement action that would otherwise ensue in the event of delayed payment of tax.