Willie O'Dea (Limerick City, Fianna Fail)
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Question 169: To ask the Minister for Social Protection the supports available and the consultation with employers groups that was made in advance of the decision to reduce the redundancy rebate; and if she will make a statement on the matter. [40490/11]

Willie O'Dea (Limerick City, Fianna Fail)
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Question 170: To ask the Minister for Social Protection if she has prepared an impact analysis on the effects on jobs of the reduction in the redundancy rebate; the effects it will have on the level of redundancy payments; if there are other macro-economic effects; and if she will make a statement on the matter. [40491/11]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 175: To ask the Minister for Social Protection her views on the impact of the reduction in the employer rebate under the redundancy and insolvency scheme on the incentive for employers to take on additional staff; and if she will make a statement on the matter. [40674/11]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 169, 170 and 175 together.

As announced in Budget 2012, the employer rebate of statutory redundancy payments will reduce from 60% to 15% with effect from January 2012. It is expected that this measure will save €81 million in 2012. To give effect to this change, legislation was introduced and passed all stages in this House last week and is due to be debated in the Seanad this week. While I acknowledge that this change may cause difficulties for employers it must be recognised that in the current economic climate, the 60% level of rebate is not sustainable.

This measure will bring redundancy rebates arrangements generally into line with other EU jurisdictions where the payment of redundancy rebates is not general practice. For example, in the UK the redundancy payment is funded by the employer and there is no recovery from the State. In Sweden there is no statutory system of redundancy payments from the employers while in Spain the employer cannot claim back any amount from the State. In contrast in Ireland last year, €373.2 million was paid out in redundancy rebates to employers and €186.2 million has been paid so far this year. Supports to enterprise are generally a matter for my colleague, the Minister for Jobs, Enterprise and Innovation.