Joan Burton (Dublin West, Labour) | Oireachtas source

I support the preparation of a report that would examine the issue of the reintroduction of tax relief on trade union subscriptions. Low pay is a serious problem in the economy. We know from the information and analysis being done by various bodies that it is a growing problem, particularly in terms of the gig economy. One of the ways to ameliorate and limit the downsides of the gig economy, and the abuse of workers, is for workers, particularly workers on low pay, to be encouraged to be able to join a trade union so that representations on their terms and conditions of work can be made. It is notable that since Ireland joined the EU there has been a significant expansion of individual workers' rights, whether that is women at work, older people at work and people with a disability being able to find work. We have done that in the context of our membership of the EU, which has, by and large, encouraged a social partnership model.

There is no doubt that we also have an alternative model in recent times in the economy, which is significant foreign direct investment. Many multinationals are anti-trade union because that is the tradition of the economies and regions that they come from. However, we also have a significant problem in sectors such as the hotel and hospitality industry. We have a significant problem affecting women workers who are on low pay. One of the few ways of addressing the low pay issue is the Low Pay Commission which, I, as Tánaiste, set up and agreed with the Minister's former leader, the then Taoiseach, Enda Kenny. This was to review the issue regularly. We need to move from minimum wage increases on a regular basis for the economy to thrive. It is a pity that on budget day there was no announcement that the minimum wage increase recommended by the commission would be implemented in January. We have been told that the increase has been just postponed rather than cancelled, and we can come back to that at another time.

I do not understand why there is so much opposition to the proposal for trade union relief and a study in this regard when all of the international evidence proves that economies featuring a well paid workforce do particularly well in combating problems such as poverty and lack of employment. Certain American cities, for instance, have introduced protections for workers. All of the evidence intimates that they are the cities that have grown because they are more attractive places to live and in which to operate.

It makes a lot of economic sense to examine the support available for trade unions. A tax relief would be a support to trade unions. We have an example of a tax relief that is in the current tax code, as the Minister's officials will be aware. I refer to donations, for instance, to charitable organisations, including Concern, that do an awful lot of work in the Third World. The relief means that the body, which is the subject of the donation, can claim a tax relief.

I can understand that there may be an awful lot of objections in principle to any kind of tax relief for trade unions on the part of the Minister's officials. We have incredible tax reliefs for businesses that come to Ireland, some of which have fantastic records in respect of conditions of employment while others have appalling records and are driving down our standards and the standards of living of our people. There are a number of different approaches available with regard to this. The Minister can ask his officials or the Parliamentary Budget Office to come up with a report that would look at the pros and cons and the experience in other countries, which is that when wages and conditions are good, an economy is more likely to thrive. I saw the Deliveroo workers cycling around town in the rain yesterday and wondered what kind of pay and conditions they are on. Many of our economies are moving to that model. If we have a vigilant trade union movement that represents workers who have poor pay and conditions, allowing the contributions of workers to the unions to be reflected in some kind of tax relief scheme to enhance the finances of trade unions will repay the wider economy. We must bear in mind that a trade union subscription is being paid out of after-tax income in general and, therefore, the reason for recognising that this tax might be repaid is the fact that it is coming out of the after-tax income. If we recognise that the work of trade unions is valuable, we would provide a scheme where some or all of that tax that has been borne by workers out of the income they use to pay their subscription would be recycled within the economy back to the trade unions to allow them to continue their really important work of representing and defending workers' rights and in that way, defending our standards of living and our society so I support it.