Richard Boyd Barrett: Demands action over Debenhams liquidation
Richard Boyd Barrett spoke on 30 Jun 2020 about the Debenhams liquidation and protections for workers, calling for priority legislation on the hierarchy of creditors and an urgent appeal of a court decision on the sexual employment, second employment order. He criticised corporate use of shell companies, urged stronger supports for small enterprises, and condemned banks, insurers and some employers for decisions that harmed workers during the COVID crisis.
Liquidation and worker impact
The deputy said Debenhams used a series of shell companies to siphon off assets, leaving around 2,000 workers - many with two or three decades of service - effectively dumped on the scrap heap. He described the liquidation as cynical and pre-planned, alleging the company used the COVID crisis to execute that plan while continuing to trade online.
Priority for creditor hierarchy legislation
He called for urgent legislation to change the hierarchy of creditors in liquidations so workers are not left at the bottom of the queue, citing previous cases including Clearies and the recent Debenhams example as evidence that reform is necessary.
Appeal of court decision on employment order
He reiterated calls made by Breed Smith and others for an urgent appeal of the court decision on the sexual employment, second employment order, warning that judicial decisions that undermine Dáil votes to protect minimum pay and conditions could affect hundreds of thousands of vulnerable workers.
Support measures and conduct of banks and insurers
He supported lifeline measures for small enterprises but criticised the unacceptable treatment of small businesses by banks, arguing that banks in which the state has a stake should grant loan holidays. He also said insurance companies should play their part in relief measures.
Public funding, film producers and pay cuts
He condemned film producers who, despite receiving Section 481 tax relief, terminated crews rather than using the wage subsidy scheme to retain staff. He also cited an example of News Spread, a distributor of independent newspapers, cutting frontline delivery workers' pay by 5% while they worked through the crisis.
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Okay, well first of all, yes, Minister, I think there is a priority on the legislation that's for the hierarchy of creditors in the case of liquidations, as Debenhams has demonstrated yet again, we saw this with clearies, legislation indeed was put forward in the Dáil, and I think it's just not acceptable that this situation is going to, is repeating itself again, with workers like the Debenhams workers, 2,000 workers, many of them working there for two and three decades, working loyally for this company and just dumped on the scrap heap, and it's worth saying that that company has used a series of shell companies essentially to siphon off its assets so there's nothing left for the workers at the end, and all they have left is the leverage they have over the assets in the stores, which quite rightly in my opinion they're saying they're not going to let leave, it's just not acceptable that workers should be treated like that, and at the bottom of the queue, when it comes to a cynical liquidation, which was clearly pre-planned and orchestrated by Debenhams, using the COVID crisis to execute that plan, and the evidence that it was pre-planned, is that they set up these subsidiaries, in order to siphon off the assets, and this is a company that continues to make profits through online trading, and continues to operate in the UK and Ireland. So that's the first thing I just want to say that I really think you should do. I want to reiterate the call that was made by Breed Smith and others earlier on, for the urgency in appealing the court decision on the sexual employment, second employment order, it is completely unacceptable that the Dáil votes in order to protect minimum standards of pay and conditions for workers, and then that that is struck down with the possible undermining of conditions, often for very vulnerable workers, among hundreds of thousands of workers affected. On the issue of supports, as others from our group have already said, we are very much in favour of giving the lifeline to small enterprises who need the support. I want to reiterate the issue of the banks, the banks treatment of many of these small businesses is unacceptable, particularly banks where we have a stake, we should tell those banks to lay off and give out holidays on loans, and so on, and similarly with insurance companies, as well as whatever support measures we are providing. But it is critically important that we weed out the companies who are taking advantage of this situation, or in some cases who are not taking up the schemes for other cynical reasons. I'll give you an example. Film producers who get a lot of money through the Section 481 tax relief, instead of taking up the wage subsidy scheme to keep their crew employed during the crisis terminated all their employment. Now I think it's incredible when government policy is to maintain the relationship between employer and worker, that film producers who are in receipt of public money make a cynical decision to sack everybody, rather than to take up the wage subsidy scheme. But equally, companies that don't pay tax in this country, or who are using the crisis as an excuse to cut pay, and I'll just finish on this, Cairlock, one company, for example, News Spread, who deliver independent newspapers, which were working throughout the crisis, and those workers were essential frontline workers, cut the pay of their employees by 5%. That shouldn't be allowed. Thank you Deputy Garmil Marcus. Thank you for listening. Thank you Deputy Garmil
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