A COMPANY facing prosecution over allegedly failing to make payments of some €50,000 to the Construction Workers Pension Scheme has brought a High Court challenge to legislation which, it claims, could result in it facing penalties of up to €400,000 if convicted.
CSF Construction Ltd, which has not traded since early 2010, has claimed the relevant provisions of the Industrial Relations Act concerning the penalties for failing to make pension payments are vague and unconstitutional.
The provisions allow for a fine of €3,000 plus a further fine of €1,000 a day for continuing default which, in CSF’s case, could amount to €400,000, it is claimed.
In those circumstances, the offence cannot properly be described as a minor offence within the jurisdiction of the District Court, it is contended.
Micheal P O’Higgins SC, for CSF, with registered offices at The Village, Tullaroan, Co Kilkenny, yesterday secured leave from Mr Justice George Birmingham to bring judicial review proceedings against the Minister for Jobs and the State to halt the company’s prosecution for the offence.
Counsel said his side had raised its concerns before the District Court and that court felt unable to strike out the prosecution but had referred the issues to the High Court for clarification.
In an affidavit, John Buggy said he and his wife were the only directors of the concrete shuttering company, which was set up in July 2006 and had not traded since about January 2010 due to the economic downturn.
He said the company was served with a summons in September alleging failure to comply with a direction of the Labour Court of August 2010 to pay €50,319 to the Construction Workers Pension Scheme in relation to workers employed from January 2007 to the date of the Labour Court order.
Mr Buggy said the company was a small company which had employed five or six people but ran into difficulties due to the economic downturn and could not pay the sum claimed.
He was now running a small shop and the situation was causing him a great deal of stress, he said.