Michael Ring (Mayo, Fine Gael)
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Question 76: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason a person (details supplied) in County Mayo has not received their redundancy payment; and if she will make a statement on the matter. [35447/09]

Dara Calleary (Mayo, Fianna Fail)
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My Department administers the Social Insurance Fund (SIF) in relation to redundancy matters on behalf of the Department of Social and Family Affairs. There are two types of payment made from the SIF – rebates to those employers who have paid statutory redundancy to eligible employees and, statutory lump sums to employees whose employers are insolvent and/or in receivership/liquidation. The Redundancy Payments Section of my Department received a statutory lump sum application for the individual concerned in June 2009, claiming inability to pay on behalf of the employer. When an employer claims inability to pay, the Department requires the submission of proof including financial accounts/certification by an Accountant/Solicitor to substantiate the claim before it can process the claim for payment. In the absence of this evidence, the Department cannot process the claim.

In this case, the evidence required by the Department has been provided in relation to previous claims from this employer dating from late 2008 and early 2009 the most recent of which were paid in April of this year. There are two outstanding claims (including the claim in respect of the individual named) in respect of this employer and I am advised that these claims will be paid over the next 1-2 weeks. Currently, the average time it takes to process rebate applications from employers filed online is 7 months while claims submitted by post are taking 8 months. The Redundancy Payments Section of my Department is currently processing applications filed online from March '09 and those submitted by post from February '09. In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements, the Section is, in general, processing claims dating from June '09.

Given the unprecedented increase in Redundancy Payment claims lodged with my Department in since late 2008 it has proved impossible to maintain the customer service targets that previously obtained. The scale of the challenge is evident from the statistics that show incoming redundancy claims with a cumulative figure for the first nine months of 2009 at 60,785 an increase of 122% on the same period last year (27,373). This figure of 60,785 exceeds the claims lodged for the full year 2008 (40,607) and 2008 was, of itself, an exceptional year as compared with earlier years when claims received were of the order of 25,000.

Efforts continue to be made by the Tánaiste and I to deliver more acceptable turnaround processing times for redundancy payments given the difficulties that this gives rise to for both individual employees and the business community. Measures already taken include: · the reassignment of 26.7 additional staff (full time equivalents) from other areas of the Department to the Redundancy Payments area since early 2009 with ongoing review of trends and demands. The current number of staff serving in the Redundancy Payments Section in terms of full time equivalents is 53.8; · the prioritisation of the Department's overtime budget towards staff in the 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). This centre has received an average of 12,500 calls per month this year with an estimated 60% relating to redundancy payments; · The provision of better quality information relating to current processing times on the Department's website; · Engagement with the Revenue Commissioners to facilitate the offset of redundancy rebate payments by employers against outstanding tax liabilities with the Revenue Commissioners.

The Tánaiste and I continue to monitor closely the impact of these changes against the continuing influx of redundancy claims and will consider further measures to deal with the situation should current measures prove to be inadequate.