Hospitals' Trust (1940) Limited (Payments to Former Employees) Bill, 2000: Committee and Remaining Stages
Friday, 30 June 2000
Seanad Eireann Debate
Mr. J. Doyle: What form will the £20,000 payment take? Will it be paid by cheque or draft to the people in question? I ask the Minister to refresh my memory about redundancy payments. I thought I was about to get a redundancy payment last week, but it appears I will be waiting a little longer for it. What rate of tax, if any, will apply to the £20,000 payments?
Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy): Payment will be in a lump sum in the form of a cheque which will be distributed by the redundancy section of the Department of Enterprise, Trade and Employment, which is represented here today by two of the most senior officials in the Department.
Under the tax laws enacted by the Oireachtas, all payments are subject to tax. However, in this case, due to the age of the people involved, they will qualify for the various allowances. This will mean that anybody with long service would not be subject to any taxation. Indeed, he or she would have approximately £5,000 to spare above the threshold of allowances. This will ensure that they will not be subject to tax. The only people who will be affected will be those who had five years service or less. In most cases, they will only be taxed at the lower rate. We are confident that only a small amount of tax will be deducted from these payments.
Regarding Senator Doyle's personal situation, we have the utmost regard for him and we have no desire to disturb his career in the Oireachtas. He can be sure that there will be another two years for him and his colleagues.
Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy): I thank the Members for their co-operation on this humane gesture by the State, the Government and my Department in co-operation with the Department of Finance and the Department of Health and Children. It is a fine day's work and it shows deep appreciation for people who gave their lives to working for modest wages for many years when Ireland needed tremendous dedication to underpin its growing economy. I am grateful to the House and I look forward to distributing the funds as quickly as possible.
Mr. Cassidy: I thank the Minister of State and his officials for allowing us to take this Bill here on the last day before the summer recess so that the money can be paid at the earliest possible opportunity to those people who deserve it. I thank the Opposition, particularly Senator Joe Doyle, and the Cathaoirleach for agreeing to take this Bill today.
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