Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 99: To ask the Minister for Enterprise, Trade and Innovation the reason for the ongoing delay in processing an application to the insolvent fund within his Department from persons (details supplied) who were made redundant from a company in County Roscommon; when the outstanding moneys will be awarded; and if he will make a statement on the matter. [21477/10]

Dara Calleary (Mayo, Fianna Fail)
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My Department administers the Social Insurance Fund (SIF) in relation to both the Redundancy and Insolvency Payments Schemes on behalf of the Department of Social and Family Affairs. I can confirm that my Department processed and paid claims under the Insolvency Payments Scheme in respect of Arrears of Wages, Holiday Pay and Minimum Notice for the person concerned and other former employees of this company in April 2010. I can also confirm that my Department received a Redundancy lump sum claim for the individual concerned on 4 January 2010. This claim awaits processing. In respect of redundancy lump sum payments paid directly to employees, such as in this instance, the Section is, in general, processing claims dating from September/October 2009.

On the Redundancy side the scale of the challenge is evident from the statistics that show incoming redundancy claims in 2009 amounted to 77,001 which represents a threefold increase over the level of claims lodged in 2007 and earlier years. In 2007, 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 in the Department in 2009 to alleviate the pressures on the Payments area include:

· almost doubling the number of staff through reassignment to a current level of 52 full time equivalents;

· prioritisation of the Department's overtime budget towards staff in the Section to tackle the backlog outside normal hours;

· establishment of a special call handling facility in NERA to deal with the huge volume of telephone calls from people and businesses concerned about their payments.

· 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 existing outstanding tax liabilities which those employers owe to the Revenue Commissioners.

The backlog and waiting times remain at unacceptable levels. However, improvements are evident. I should point out that my Department has, in 2009, processed 50,664 claims, up 70% on 2008. During the period 1 January 2010 to 30 April, 2010, 23,593 claims were received and 27,592 were processed. In the year to date, inroads have been made on the backlog of claims on hand, which reduced from 41,168 at the end of January to 36,333 at the end of April 2010.

Responsibility for the payment functions arising under the Redundancy and Insolvency payment schemes is due to be transferred to the Department of Social Protection with effect from 1 January 2011. In transferring the functions between Departments, it is the intention that this will operate seamlessly and without any adverse impact on the service levels being experienced by individuals or the business community awaiting payment of redundancy claims.

Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 100: To ask the Minister for Enterprise, Trade and Innovation when redundancy payment will be finalised in respect of a person (details supplied) in County Laois; and if he will make a statement on the matter. [21518/10]

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. I can confirm that my Department received a lump sum claim for the individual concerned on 23 June 2009.

In instances such as this, where the employer does not formally wind the company up but goes into informal insolvency and is unable to pay the statutory redundancy entitlements, the Department seeks from the employer evidence of inability to pay the entitlements to the employees. This involves requesting a statement from the company's Accountant or Solicitor attesting to the inadequacy of assets to make the redundancy payments and the latest set of financial accounts for the company. The employer is also asked to admit liability for the 40% liability attaching to the company arising from the redundancy payments.

If this information is provided to the Department, the employees are paid their redundancy entitlement from the Social Insurance Fund. Upon payment, the Department pursues the company for the 40% share that the company would ordinarily have been expected to pay to the employees. In the present instance, my Department has been in contact with the employer seeking to obtain all of the necessary documentation and the employer has, at this point, provided some but not all of the documentation. Upon receipt of the outstanding documentation and if this is in order, it should be possible to process the claim for payment shortly thereafter.

If the necessary supporting documentation required from the employer is not provided to my Department, the employee will be advised by my Department to take a case to the Employment Appeals Tribunal (EAT) against the employer to seek a determination establishing the employee's right and entitlement to redundancy. Once such a determination is available, the Department is then in a position to make the payment to the employee concerned. Should the outstanding documentation be provided by the employer during the period while the case is pending a hearing before the EAT, this would allow the claim to be processed by my Department in the usual way.