Brendan Howlin (Wexford, Labour)
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305. To ask the Minister for Housing, Planning, Community and Local Government further to Question No. 254 of 22 November 2016, the basis on which he supported the payment of statutory redundancy, by approving amendment of the LCDP financial guidelines, to employees made redundant as a result of reorganising and replacing the LCDP scheme in 2015, but has not supported the making of ex gratia payments to former employees where the companies had no funds to make such payments; if money was provided in the 2016 or the 2015 Vote for his Department to allow for such ex gratia payments; if an amendment of the law would be required for the purpose; if he is in compliance with a Labour Court recommendation (details supplied) to enter into meaningful discussions with workers and their union representatives regarding the issue; if he is in compliance with any agreement or understanding on the matter between the parties to the Haddington Road agreement; and if he will make a statement on the matter. [37758/16]

Simon Coveney (Cork South Central, Fine Gael)
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I refer to the reply to Question No 254 of 22 November 2016, regarding the Local and Community Development Programme (LCDP).

My Department has no role in the internal operations of any private organisations, and therefore does not have a role in relation to staff or employment matters, which are for the Board of the company, as the employer, to manage. Section 2(3) of the Community, Rural and Gaeltacht Affairs (Miscellaneous Provisions) Act 2007, specifically provided that:

“The Minister shall not be, or be deemed to be, an employer, within the meaning of the Terms of Employment (Information) Acts 1994 and 2001, by virtue of the provision of funding to a person or persons under any scheme”.  Each funding Department is responsible for its funding and contractual arrangements with the Local Development Companies (LDCs). 

However, the Government recognises that, like all other sectors of our economy, the community and voluntary sector has had to deal with reduced funding and financial shortages in recent years and issues have arisen around the capacity of the sector to pay enhanced redundancy payments.

Having considered the outcome of the competitive process for the Social Inclusion and Community Activation Programme (SICAP), and the resulting impact for a number of LDCs who failed to secure SICAP contracts, it was agreed in 2015 that, as part of the closing arrangement for LCDP, provision would be made to allow for certain redundancy costs to be charged to LCDP funding, from within the voted Programme allocation, subject to written agreement to the limits of spend. Sixty Six employees, equating to 52 full time equivalent employees, benefitted from this approach.

Separately, the Department of Public Expenditure and Reform provided limited funding to my Department’s vote in 2014, 2015 and 2016 for a redundancy scheme to compensate certain former community workers who lost their jobs as a result of reductions in programme funding from 2009.  My Department understands that the employers involved fulfilled their statutory redundancy obligations to the employees concerned.  Some of the employees in question subsequently made claims for enhanced redundancy payments through the Labour Relations Commission and the Labour Court and non-binding Labour Court recommendations, to provide additional benefits, were made in certain cases.

My Department has received comprehensive legal advice in relation to the establishment of the enhanced redundancy scheme subsequently proposed by the Department of Public Expenditure and Reform.  It has been in the context of the legal issues identified that discussions between my Department and the Department of Public Expenditure and Reform and the Attorney General’s Office have taken place.  Consideration of the matter will be finalised in light of the outcome of these consultations.