Alan Kelly m.e.p.

Labour MEP for Munster/Ireland South, Alan Kelly has vowed to lobby the EU to secure some funding under the EU globalisation scheme for the former Waterford Crystal workers. This fund was recently used to secure €14.8 million for former staff at Dell and Banta in Limerick.

"An application has been lodged in Brussels last Friday by the Government that aims to assist former Waterford Crystal staff and I can assure people in Waterford that I will doing everything in my power to have this application passed. I will be lobbying on their behalf but we do need the Government and in particular the Tanaiste and Minster for Enterprise, Minister Coughlan to push for support for the Waterford Crystal workers and to make it a priority for her Department. It is crucial that this is at the top of her agenda, because it would mean a lot to the people who are trying to make ends meet ", stated Alan Kelly MEP

"The workers from Waterford Crystal were treated very unfairly and like workers from Dell and Banta, they deserve to benefit from any available EU resources. It is important that any resources towards the re-training of workers can be allocated towards local institutions such as Waterford Institute of Technology. The onus is on the Government to ensure these funds can come through so we need to present the strongest case possible for Waterford. Many of the people who were made redundant from Waterford Crystal have now been out of work for several months. It is completely understandable that these people are eager to re-enter productive employment. Many have ideas for future employment and business ventures but they need assistance to move. If EU resources are available for these people it helps to make a valuable contribution to rebuilding Waterford's economy", concluded Kelly.

Deasy questions Department's PRSI levy on Crystal Workers Department agrees to review situation

Deputy John Deasy has contacted both the Department of Social and Family Affairs and the Department of Finance to question the 10% PRSI levy being imposed on former Waterford Crystal workers. As a result of Deputy Deasy's question, the Department of Social and Family Affairs has agreed to review the imposition of PRSI on money paid to former crystal workers by KPS Capital Partnership and contact the Department of Finance about the matter.

The situation arose when the Waterford Crystal receiver refused to pay the employer's PRSI on the payment of €10 million being made to former workers at Kilbarry.

Deputy Deasy said: "I've been in contact with the PRSI section at the Department of Social and Family Affairs. I didn't believe it was absolutely clear why these workers are being forced to pay their employer's PRSI. The Department has responded by requesting that I withdraw the parliamentary question so that they can consult with the Department of Finance on the matter. I've agreed to do that in order that both Departments consult and look into the matter more thoroughly before they give a definitive ruling."

According to Deputy Deasy, in most cases lump sum payments made to employees when they leave employment are not subject to PRSI. These would include redundancy payments, gratuities, ex-gratia payments and pay in lieu of notice.

He said, "It's a question of determining how this lump sum is classified and whether or not it is then exempt from tax. I've made the argument that if the payment is exempt from tax it is then automatically exempt from PRSI. The Department of Social and Family affairs have promised to revert back to me with a definitive ruling this week once they have consulted with the Department of Finance. In many cases these workers have lost almost the entire worth of their pensions, never mind their jobs. This is a situation where a little understanding and common sense on the part of the Government wouldn't go astray."