Written answers

Wednesday, 14 January 2015

Department of Social Protection

Insolvency Payments Scheme Payments

Photo of Jim DalyJim Daly (Cork South West, Fine Gael)
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73. To ask the Minister for Social Protection when her Department will have completed a review to decide if payments can be made to persons under the insolvency payments scheme after being made redundant by companies which have not been liquidated; and if she will make a statement on the matter. [1378/15]

Photo of Jim DalyJim Daly (Cork South West, Fine Gael)
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74. To ask the Minister for Social Protection the number of persons who have applied to her Department for a payment from the insolvency payments scheme but do not qualify as the employer has not been liquidated for each of the past seven years; the value of these application to the applicants; and if she will make a statement on the matter. [1379/15]

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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110. To ask the Minister for Social Protection if any progress has been made on the review of eligibility for the insolvency payments scheme; and if she will make a statement on the matter. [1714/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 73, 74 and 110 together.

My Department is continuing to review the position to establish what, if anything, can be done to progress payments to individuals in situations where employers cease trading without engaging in a formal winding-up process, and who owe moneys to their employees.

My officials are consulting with a range of interested parties including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners to establish what, if anything can be done to progress payments to individuals in these situations. To date my officials have had one formal meeting with the various parties mentioned above in connection with this issue and continue to engage with all relevant parties to try to progress the matter.

I am not in a position to indicate when this review will be completed.

My Department is aware of circumstances where companies have ceased trading without engaging in a formal winding-up process and where those employers may owe monies to their employees. Such employees are not eligible for payments under the insolvency payments scheme. At present we have information on approximately 200 such situations. We have been informed of the value of the claims in 75% of cases and they range in value from €52 to €33,411. However, the number and value of cases notified to us cannot be taken to be indicative of the total number. Individuals in this situation may not have made contact with the Department, as they would be aware that eligibility for payment under the insolvency payments scheme only arises when a company has been formally wound-up.

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