Tanaiste and Enterprise, Trade & Employment Minister Mary Harney has announced the establishment of a review group to examine the statutory redundancy scheme.
The Tanaiste said the Irish economy was no longer recognisable from what it was in 1967, when the scheme came into being.
The review group will include representatives from the social partners and the departments of the Taoiseach, Finance, Social Community & Family Affairs and Enterprise, Trade & Employment.
It will look at the operation of the scheme, which is funded from the Social Insurance Fund. The group has been asked to identify requirements for a more efficient system 'adapted to an e-Government environment' and to examine the benefits payable under the scheme.
It is to report to the Tanaiste within four months with recommendations and costings.
Under the current scheme, the employer pays 100% of the minimum statutory payment and obtains a 60% rebate from the Department. It cost €27m in 2001 and is expected to cost €41m this year.
