Bernard Durkan (Kildare North, Fine Gael)
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Question 428: To ask the Minister for Enterprise, Trade and Innovation when redundancy payment, wages and holiday pay will issue in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [35166/10]

Dara Calleary (Mayo, Fianna Fail)
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My Department administers the Social Insurance Fund (SIF) in relation to the Redundancy and Insolvency Payments Schemes on behalf of the Department of Social Protection.

In relation to the claims under the Insolvency Payments Scheme, my Department received applications from the liquidator in respect of arrears of pay, minimum notice and holiday pay for the person concerned in mid-September 2010. The downturn in the economy has resulted in a significant rise in the level of company receiverships and insolvencies. Consequently, an increasing number of claims are being submitted to the Insolvency Payments Section, with 20,411 new claims received in 2009 – an increase of 78% over 2008. Claims are dealt with in order of date of receipt and processed as quickly as possible. We are currently processing applications received in June and my officials are constantly endeavouring to achieve earlier completion and payment dates.

My Department is also in receipt of a statutory redundancy lump sum claim on 2 July, 2010 in respect of the above individual. This claim awaits processing. In respect of lump sum redundancy payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements, the current processing time for these claims is between 6 and 7 months and claims dating from March are currently being processed. Of course in some instances, where the necessary supporting documentation for lump sum claims is not provided to my Department, or where queries arise, processing of claims can be further delayed until the required documentation is provided and/or outstanding queries are resolved.

My Department continues to make every effort to reduce processing times. Measures already taken in the Department to alleviate the pressures on the Payments area include: · Almost doubling the number of staff working solely on redundancy payment claims 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.

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.