Unacceptable capitalism - Clerys sale controversy

IF there is even a grain of possibility in the suggestion in the report to Government on the Clerys closure by Minister for Business and Employment Ged Nash that, in economic terms, the State may well turn out to be the biggest loser as it might have to pay entitlements to former employees of the company then new legislation is required urgently.

It would be utterly indefensible, and an affront to the idea of ethical business practice, if, as suggested by Mr Nash, that the State may well turn out to be the biggest loser in this transaction by “acting as — in effect — the statutory undertaker for the liabilities of the trading company to its employees, the Department of Social Protection will pay out very significant sums of money over the coming weeks”.

Clerys was sold last month by Boston’s Gordon Brothers to Natrium, which is made up of Irish investment group D2 Private and Cheyne Capital Management in the UK, with financing from Quadrant Real Estate Advisers.

Just as it is unacceptable that some profitable firms pay their employees so very poorly that they qualify for welfare income supports — a subsidy for the company — it would be utterly unacceptable if the new owners of Clerys were able to ring-fence the prize asset — the building — and expect the taxpayer to pay all of the money owed to the workers dismissed in such a brutal fashion. Once again the unacceptable face of capitalism challenges our Government to act.