Written answers

Wednesday, 16 December 2009

Department of Enterprise, Trade and Employment

Redundancy Payments

11:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 80: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of applications for redundancy payments in each of the past three years for Kildare South; and if she will make a statement on the matter. [47280/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Unfortunately, I am unable to provide the Deputy with the specific information he has requested as the Department does not collate statistics for redundancy payment claims on the basis of local authority boundaries. I am sure the Deputy will appreciate that at this time my focus and that of my Department is on ensuring that redundancy payments are processed as quickly as possible.

I can advise the Deputy that the latest figures available to end November 2009 indicate that, on a national basis, the number of redundancy claims awaiting processing stands at 42,591. I should point out that my Department has, since 1 January processed 45,201 claims and made corresponding payments amounting to €287m (provisional figures) which results in average weekly payments to the value of €6.5m being issued. The Redundancy Payments Section of my Department is currently processing rebate applications submitted by post from March 2009 and those filed online from April 2009, so that the waiting time is approximately 8 to 9 months depending on the manner of filing the application. In respect of lump sum payments paid directly to employees the Section is, in general, processing claims dating from June 2009.

Given the unprecedented increase in Redundancy Payment claims lodged with my Department 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 eleven months of 2009 is 73,024, up 96% on the same period last year (37,257). This figure 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 my Department 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 52.5; · 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.

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