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Months on, Clerys workers and concession holders remain out of pocket – Tóibín

1 September, 2015

Speaking as the Committee of Inspection met in Dublin to discuss the creditors’ interests following the liquidation of the Clerys holding companies, Sinn Féin’s Jobs, Employment and Innovation’s spokesperson Peadar Tóibín TD stated that ‘government inaction was costing Irish people millions of euro’.

Deputy Tóibín said:

“Shockingly the state will be on the hook for €2.5 million to cover statutory redundancies. We know there is a further €2 million owed to the Concession holders.

“In the meantime, Gordon Brothers walked away from the Clerys sale with a profit reportedly worth around €15 million, and Natrium has bought a prime development opportunity worth way over what they’ve invested.

“Under company law which Minister Nash has stated that he is satisfied with, neither Gordon brothers nor Natrium are required to cough up the employees’ entitlements in full or the monies owed to the concession holders.

“My fears are that the workers, taxpayers, and the concession holders are on a hiding to nothing at today’s meeting as the way the system is currently constructed the assets are insulated from their liabilities. This will remain until Labour and Fine Gael legislate to prevent tactical insolvencies. It can be done if there is political will.

“I myself tabled the Companies (Amendment) Bill 2015 in February this year which seeks to pierce the corporate veil. I urge Fine Gael and Labour to support this bill or produce similar before the next strategic insolvency fleeces workers and taxpayers again.” 

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