P J Sheehan (Cork South West, Fine Gael)
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Question 109: To ask the Minister for Enterprise, Trade and Employment when a person (details supplied) in County Cork will receive a decision on their redundancy claim from the social insurance fund; and if he will make a statement on the matter. [13225/10]

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.

As I indicated to the Deputy in Parliamentary Question 125 of 24 November, 2009, I can confirm that my Department received an application for a statutory redundancy lump sum payment on 5 November, 2009 in respect of the person concerned which is still awaiting processing.

In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements as in this case, the Section is, in general processing claims dating from August 2009 so that the current waiting time for processing claims is generally 7 months. In the interests of equity to all claimants, claims are processed in order of date of receipt.

The unprecedented influx of redundancy claims received by my Department since the latter end of 2008 and which is continuing, has placed considerable pressure on the Department's ability to process claims in an acceptable timeframe. In 2009, a total of 50,664 claims were processed, up 70% on 2008 levels, and corresponding payments totalling €336m were made which results in average weekly payments to the value of €6.5m being issued. In the period 2007 – 2009, the level of new claims lodged with my Department has increased cumulatively by 200%. This contrasts with the previous two-year period 2005 – 2007 in which period the increase in new claims lodged was just 10%.

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 although the Section is currently carrying two vacant positions which are due to be filled;

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 it is clear that additional measures are required to help reduce the backlog of claims which currently stands in excess of 39,000. The Department is actively engaged in efforts to secure up to 16 additional staff resources to be deployed to the area in the first half of 2010.