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Dublin: 6 °C Thursday 23 May, 2013

Sit-in at Cork Target Express plant begins after company ceases trading

Meanwhile, the Irish Road Haulage Association has said it fears there will be thousands more job losses before Christmas because of fuel price increases.

Image: Laura Hutton/Photocall Ireland

WORKERS AT A Target Express plant in Cork have begun a sit-in after it was announced the company is to cease trading.

The Cork Independent says that the workers at the company’s Little Island office are staging the sit-in.

The company delivers parcels and pallets around the country and to the UK, and has plants in different locations around Ireland. Its base is in Northern Ireland.

The news comes after Seamus McBrien, the owner of Target Express, spoke to Newstalk about the reasons behind it ceasing trading.

Speaking to Breakfast on Newstalk, McBrien said that the company owed Revenue just over €300,000, and paid them €214,000 last Monday. He said that Revenue wanted him to pay a further €80,000 that he owed by the Wednesday but he told them he would pay it on the Friday.

When it was not paid on the Wednesday, an attachment order was put on the company’s bank accounts, said McBrien, which meant he could not pay wages or access money.

McBrien said the company was expected to make €1.6million by the end of this year.

Staff told RTÉ that they had not received their wages last Friday.

Job losses

Meanwhile, the Irish Road Haulage Association has warned that while the closure of Target Express is very concerning, “it is only a reflection of the current state of emergency which exists within the Irish road haulage industry in Ireland”.

With the loss of almost 400 jobs associated with Target Express, the IRHA fears that unless increasing fuel prices are stemmed, there will be thousands more job losses before Christmas.

President of the IRHA Eoin Gavin stated:

The industry is in dire straits at the present time. The price of diesel is rapidly increasing and the Government are very slow to react and prevent further closures of transport companies and the loss of associated jobs.

He added that the current working environment “is simply not sustainable for our members and we cannot and will not be able to maintain the current level of employment within the sector”.

There are 50,000 people, inclusive of ancillary jobs, employed within the industry and without the introduction of an Essential User Fuel Rebate (EUR) for tax compliant, licensed operators that level of employment will drop dramatically over the coming months. Government intervention is urgently required in order to continue to facilitate our export led economic recovery.

Read: New corporate watchdog could still pursue Wallace’s €1.4m tax case>

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Comments (65 Comments)

  • Can’t understand why government did not intervene looks like you need to be a large multinational foreign company before government give you the time of day

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    • Now you have hit the nail on the head ! That is exactly who they will help.
      I wish people would Wake UP

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    • I meant to say , God Luck to the Workers of Target . It is a very unfair situation they find them selves in . I wish them well .

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    • @Eileen. hahaha you have really changed the foundation on which people would normally say “I meant to say”

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    • Maybe I should have said I ** also ** meant to say GOOD LUCK I did not see my spelling mistake til you mentioned it and then I saw that I left out the word **also** …. Thanks EP :-)

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    • Why the Hell can Revenue get some commercial sense ? This is a disgrace. According to the undisputed statements there was about 125 euros between them (out of a far larger total —- millions) , the company had made great steps to pay the debt, and 398 FAMILIES now face the dole. For goodness sake ! This is what has us where we are —// at the bottom of the pit. Can anybody talk some sense into Revenue? This is a cock-up. Is someone just trying to prove they have power? Get a life Revenue, you are a disgrace.

      Reply
  • My guess is that’s there is much more to this than we are reading here….

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  • There is more to this story that what is out there. Target owners are taking advantage of the fact that revenue do not comment on individual cases by putting a spin out there.

    From working for a large accountancy practice with the revenue(with their large cases division / small town division and collections divisions) for 15 years my experience of revenue is that they are very reasonable and fair to deal with and only as a last resort do they move like they did here. there must be a long history of non tax compliance from Target.

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  • It’s shocking what’s happening in this country. Government needs to take its head out of its ass.
    Best of luck to these workers

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  • I agree with Gagsy, we’re only hearing one side of the story as Revenue can’t discuss individual cases with the media. If the company is doing as well as the owner claimed on Newstalk this morning, then why not pay his taxes on time and in full? It needn’t have got to this point if they had done that. It’s sad for the employees sure but then again if it was revealed that Revenue was letting people evade tax and not pursuing them over it then I’m pretty certain people would be complaining about that too – you can’t have it both ways.

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  • bob 28/08/12 #

    it’ll cost the country ten times more to keep these people on the dole than what was owed! 300k v’s 3million.beggers belief

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  • Lets not forget that Revenue are unable to comment and Seamus McBrien (a member of the Sean Quinn support Concerned Business something or other) could be talking out of his fundamental orifice.

    Nevertheless, a sad day for those employed there.

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    • tonya. i agree with with gagsy why close such a big company over a 2 day delay on 80k? doesnt make sence. this goes a hell of a lot deeper than that. if i were revenue theres no way i’d close a businesss that size owing pocket money. p.s i.m 1 of the 400.

      Reply
  • Occupation is becoming a regular thing in Cork, aside from the actual occupy movement we’ve seen the Vita Cortex, Game shop and other places occupied in the county.

    Best of luck to the workers

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  • This is a disgrace to say the least. I’m sorry but for the revenue to put 390 people as it stands on the dole queue for 80k, that would be payed 2 days later is a travesty .
    Granted there’s probably more to the revenues case but still and all to put 390 people on social welfare is wrong .
    Outside of the money owed to revenue the cost to the state(the Irish tax payer) will amount to €3.8million for a full year at basic welfare payments.

    Reply
  • Another 400 on the Dole, plus about 1,000 of them being family members. Boys with art degrees in Revenue, what a shower of clowns running Ireland!

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  • Wish then all the best. Probably took this for the right questions to be asked as to why they did not agree to the payment plan proposed.

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  • It’s thought to see more people pushed onto the dole. I wish them well.

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  • Lots of companies seem to use it as such but tax isn’t an overdraft facility.

    Does anyone here castigating the Revenue/government have any actul information on how the company came to this unfortunate state other than what the company boss has said? I listened to him this morning and I thought he was quite evasive about the specifics of how much he owed, for how long, and why.

    My understanding is that the Revenue will not act precipitiously if there is a good chance of receovering the tax.
    But utlimaately their job is to collect tax. They don’t have a mandate or the power to decide on whether government should invest in specifically troubled companies (which is basically what ‘facilitating’ the company would have been).
    Would you lend this company your savings? If the Revenue don’t collect whats due then they are lending your money to the company.

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  • owner of this company has been bankrupt on two previous occasions. check out Celtic Freight. Would not take his word for gospel and the Revenue would not close such a substantial outfit over 80k of late payments. load of BS from McBrien.

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  • Should be ‘tough’. Bloody phone

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  • maura 28/08/12 #

    Wonder what the comments would be if company went bankrupt owing revenue this money. Revenue are there to collect tax. We may not like paying it but two sure bets in life– tax and death.

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    • Maura
      With that attitude maybe we should all just go away and die so …… What about LIVING and supporting each other and fair play ? Yes we all need to pay tax ! That is not in question …. It is 400 jobs that are lost with the tic of a pen ….

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    • maura 28/08/12 #

      Eileen blame the owner of the company. Not the revenue. They are doing their job.

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    • Reg 28/08/12 #

      So what businees should the revenue ignore Eileen. What about the competitors of this company that up to date with their taxes?

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    • Eileen, if you want the government to invest taxpayers money in insolvent or struggling companies, thats one thing, but I don’t think the Revenue have the authority or should have the authority to make such investment decisions with our taxes.
      I’d rather that Investment in jobs wasn’t chanelled to struggling or insolvent or non-tax compliant companies.

      And how do you know its ‘with the tic of a pen…’?

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    • But for 400 people to lose their jobs for the sake of, lets face it, a small amount of money. How much are we going to have to pay to have these people on the dole? I agree, we all have to pay our taxes, but surely everything isn’t black and white. Surely revenue should have given this company 2 more days to pay 80,000.

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    • Smiley 28/08/12 #

      Eileen, it seems the company hasn’t played fairly with its workers.

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    • Tonya – if the facts were simply that the Revenue closed this company down with the loss of hundreds of jobs for the sake of a two day delay on 80K I would be agreeing with you how draconian that was. It would be ridiculous, unbelievable, scandalous, stupid, cruel, etc..
      Therefore I don’t believe that the facts are as simple as that.

      Reply
  • Sorry for all those who are loosing their jobs.
    If Target are going out of business over a revenue bill, the chances are that the company was on its last legs anyway. 300,000 will pay 15 full timers for a year, presuming that not a single truck moves off the loading bay.
    Targets only hope now is a buyout, and that’s not the Revenues fault.

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    • @ Mark, yes but this company seems to have folded up because the revenue wouldn’t wait 2 days for 80,000 euro. Surely they should have more give and take than that? Also, I was listening to what the owner of Target Express was saying this morning on the radio, and they seemed to have a plan in place to be up to date in their payments within 4/5 weeks. Could the revenue not take them up on this offer instead of putting 400 people on the dole and yet more families on the breadline?

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    • Micheal 28/08/12 #

      The last resort for revenue is to seize the bank accounts. Revenue is not a money lender. I don’t know both sides of this story, but I’d bet my hat that there’s a helluva lot more to it than is being portrayed here.

      Reply
  • Gary. 28/08/12 #

    This is what happens when companies work for nothing like most of the haulage industry,workers suffer and wages are cut an eventually people lose jobs, blame it on diesel costs etc everybody stick together and people might make money.

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  • Can someone explain to my why Target hadn’t paid their tax in the first instance??

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  • Katie Taylor wins a gold and the government are all over the media like a rash 400 people lose their jobs and no one around for a comment ? Talk about pushing the self destruct buttonWhy would anyone set up a new company in this country?

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  • Wouldn’t be surprised to see Fed X or some other multinational move in to take up the slack.

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  • mr mcbrien very fast to put the spin on the revenue …he has been on every radio station in the country telling his side of the story yet he hadnt the decency to meet with his employees or engage with them its a sad state of affairs for workers to hear about their jobs being lost on the news that is a complete disgrace …share holders funds stand at 7,3 million and yet the workers wont see a cent of this neitheir will the leasing companies diesel suppliers or the tyre suppliers how many more people will this effect and he the company can and will walk away this is a complete disgrace to leave your employees at the side of the road 17 weeks till christmas shame on all concerned

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  • vat should just be resting in your account.

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  • so typical of d irish government.
    ..sure just put anoda 400 on d dole. the whole country should revolt. property tax, increase income tax,fuel tax, water rates etc etc. soon der will be a tax on oxygen so no breathin allowed. makes me sick

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    • You are not making sense, on the one hand you say that the country should revolt and stop paying taxes and on the other hand you are saying that the government should financially intervene and subsidise a private company with tax money.

      At the end of the day if Target could not pay their day to day bills they had their business model wrong, so why should the government subsidise them at the detriment of their rivals who have a sound business model and are able to pay their creditors. Dont forget that monies owed to the revenue are only resting in a companies account.. They collect VAT from their customers and PAYE/PRSI from their workers, its not their money for them to use it to pay their bills.

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    • Yes, Stoned, the government should intervene and subsidise a private company with tax money. Just like they did for the banking sector.

      Also if the situation as stated by Seamus McBrien is correct we should start asking ourselves if the government really give a flying f@ck about anybody except their buddies in the corporate sector.

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    • @Hugh, why does it always come back to the banking bailout, is that how you measure all government decisions, whats done is done with the bail out.

      Are you going to be here in 20years still time spouting the same old line about every government decision???

      Reply
  • Cara 28/08/12 #

    “In a statement, Revenue said that, in general, cases are referred for enforcement where a taxpayer or business has failed to comply with the obligation to pay tax and where there are no satisfactory proposals towards addressing the debt.” rte.ie. I can’t understand why a proposal to pay €80,000 on a Friday instead of a Wednesday was not a “satisfactory proposal”.

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  • how could the gubberment let this happen its an absolute disgrace, the revenue shiuld be ashamed of themselves putting a company out of business and 400 people on the dole over a relatively small amount if money,its playing into the hands of scab employers like stobarts 50 hrs a week for mininum wage

    Reply
  • Perhaps the tax payer should pay the bill for him they are paying all the bills that the banks are pushing on them this country is a joke no one wants to pay , let it all fall back to the tax payer if you do not believe me look at m. wallace walk away walk on pay 40,000 a year he will have to live forever some joke , the joke is on the people.

    Reply
  • Revenue have said, they are not a lender of last resort. Arrogant bunch aren’t they, can’t be seen as soft and must be tough to the point of Bankruptcy! Imagine how it’ll be with the property tax, we must make a stand and all of us.From public to private sector, road sweeper to Ceo’s. This Hitlerism, has to end and fast! Get the Blueshirts and redheads out, fast and no sooner!

    Reply
  • Good news for the smaller delivery companies. I always preferred fastway

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    • How is it good news for anyone. The smaller delivery companies don’t handle the same kind of deliveries as target so it won’t benefit them anyway.
      It is never good news when you see any IRISH company closing down resulting in job losses. When you compare what this company owes with what that plonker Wallace owes this country is so backwards it’s not even funny

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    • Actually, the work itself will stay; the goods still need to be shifted.

      Still, it’s a strange story and I think we haven’t heard all sides yet.
      At the moment it’s the poor employees who suffer…

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    • Think my comment fell into the ether there Journal.

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    • @ Mark, there are now nearly 400 workers out of a job. Do you think by this firm going under that 400 jobs will be created somewhere else? I’ll not wait with baited breath!

      Reply
    • I don’t think all jobs will be recreated, no. However a large portion will be recreated.
      Again, we haven’t heard the full story and it’s to easy to just blame the revenue and its those poor workers who are suffering.

      Reply
  • Absolute Jim

    Reply

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