Micheál Martin (Cork South Central, Fianna Fail)

I move: "That the Bill be now read a Second Time."

This Bill has two key objectives. First, it puts in place a statutory framework within which I will implement an active, managed economic migration policy, the details of which I am announcing to the House today. The three pillars of this employment permit policy will be green cards, an intra-company transfer scheme and a revised work permits system. Second, it provides a number of new important protections for migrant workers working in Ireland.

Before dealing with these two key objectives and going on to describe the sections of the Bill in detail, I wish first to put the Bill in context in terms of our economic and labour market situation. Obviously, economic migration policy must be responsive to different stages of economic development and to labour market conditions. We can be satisfied that our economic migration policy to date has been responsive in this way. During the past ten years, for example, Ireland has been transformed from being primarily a country of emigration, or outward migration, to a country of immigration, or inward migration. During the late 1980s as many as 65,000 people left Ireland each year. This has changed so much that in the year to April 2005, the same number migrated into Ireland.

Economic migration policy responded quickly to the improvement in our economic performance, the fall in unemployment and the resultant labour shortages. As a consequence, the number of work permits issued increased dramatically from slightly less than 6,000 in 1999 to close to 48,000 in 2003. When the new ten member states joined the EU, as a significant mark of solidarity with our new EU partners and in recognition of the tightness of our labour market, the Government decided to grant freedom of movement to nationals from these states from the date of accession on 1 May 2004. This has had a major impact on the number of work permits being granted. In the nine months to the end of September, a total of 20,400 permits were issued, of which just 6,000 were new permits. In the year 2000 we also introduced the work visa-work authorisation system to deal with skills shortages among highly skilled occupations in the information and communications technology, construction and health sectors, in particular. Last year 1,500 of these permits were issued.

There is now great diversity in our labour force. Nationals from more than 100 countries work here and between 1999 and 2005 the number working here rose from 3.7% to 8%, or about 160,000, of the total labour force. Therefore, so far our work permit policy has served the needs of the economy well and has reacted flexibly and successfully to the requirements and changes in our labour force. This Bill is another response to our skills and labour force needs.

The Employment Permits Bill puts in place a statutory framework for an active, managed economic migration policy. The economic policy context for this was set out in the enterprise strategy group report and the Government's action plan to implement it. Both the report and the action plan had as their objective the moving of the economy to a position where it is both knowledge-based and innovation driven.

Labour market policy measures are a key part of the objective in three ways. First, we must continue to upskill our own workforce and the One Step Up initiative, which I launched last month, will be crucial. This €35 million initiative, being implemented by FÁS, will upskill our workforce through a process of life long learning. It focuses in particular on lower skilled workers in SMEs as that is where the most need lies.

Second, we must maximise the potential for European Economic Area nationals to fill most of our skills deficits. We are now part of a labour market of 200 million workers who have free access to our relatively small labour market of 2 million. We are obliged as EU members to have regard for Community preference in meeting our labour market needs. Many citizens from the ten new European Union member states have already come to work in Ireland. It is estimated that over 90,000 of them have come to work here at some stage since January 2004.

There is no doubt that appropriate EEA workers are available to fill most of our skills shortages. The Forfás expert group on future skills needs came to this conclusion in its report entitled, Skills Needs in the Irish Economy: the Role of Migration, which it will publish later this month. I am arranging to supply draft copies of the report to the Opposition spokespersons. I did not wish to delay the passage of the Bill.

However, there are skills shortages which cannot be sourced other than through economic migration. This the reason the third key labour market policy measure to move our economy to one that is both innovation-driven and knowledge-based is the development of a strategic skills-based immigration policy to which the enterprise strategy group report specifically referred to and which this Bill will allow me to implement.

The focus of this policy will be to efficiently and effectively import those skills which are required to quickly move our economy onto a new plane but which cannot be sourced either within Ireland or the EEA. The strategic skills-based immigration policy that I am announcing today has taken into account the views of the Forfás expert group on future skills needs as expressed in its report.

The expert group report referred to the economic arguments that a migration policy which targets individuals possessing high level or scarce skills can have a significantly positive impact on economic performance, on GDP per capita and productivity, particularly when company-specific skills are required. I regard these arguments as compelling and they have informed the policy I am announcing today. I thank the expert group on future skills needs for its work in this area which has been a very useful input to policy.

Our economic migration policy will be vacancy-driven rather than based on quotas or points. The core of the policy is the offer of a job. In this way our employment permits policy will be both more responsive and more efficient in responding to the needs of the labour market. Our system will be simple and transparent rather than complex and bureaucratic. We will avoid the complexities and inefficiencies involved in points and quota systems. The expert skills group report also favoured this approach.

The new employment permits system, which it is my intention to introduce next year, has three pillars. Pillar one is the establishment for the first time in Ireland of a green card for occupations where there are skills shortages. This will be for a restricted list of occupations in the annual salary range from €30,000 to €60,000 and for a more extensive list of occupations in the annual salary range above €60,000. Pillar two is a re-established intra-company transfer scheme for temporary trans-national management transfers. Pillar three is a work permit scheme for a very restricted list of occupations up to €30,000, where the shortage is one of labour rather than skills. These three pillars will be the means of implementing an actively managed economic migration policy.

This Bill provides a framework within which I have the flexibility to adapt and use different migration policy instruments based on different criteria, as necessary. I will keep the implementation of the current set of policy instruments under review and will adapt them as necessary as the economy and the labour market continue to change. In doing so we will take on board the lessons learned by other countries, including the integration issues raised by the experience in those countries. I am aware the International Organisation for Migration will in the coming months produce a report on the economic and social implications of migration to Ireland, which has been commissioned by the National Economic and Social Council. I look forward to considering its findings.

The green card system will be for occupations where there are high level or strategic skills shortages. I will cite the key features of this new green card system. First, where the annual salary, excluding bonuses, on offer is in excess of €60,000, which is twice the average industrial wage, the green card will be available for an extensive list of occupations. It will also be available in the annual salary range from €30,000 to €60,000, which is between the average industrial wage and twice that level, for a restricted number of occupations where skills shortages are being experienced. These occupations will be identified following advice from the expert group and will be reviewed on a regular basis.

There are two reasons for using salary thresholds in this way. First, in many cases high pay is a reasonable proxy for high skills and this has been demonstrated by the current work visa-work authorisation scheme. Second, salary levels provide some assurance that these workers can provide for their families here without State assistance.

The expert group report has already given very firm indications of the sectors and occupations in question. The report refers to skills shortages in the information and communications technology, healthcare and construction sectors to which the current work visa-work authorisation scheme applies. The report also includes other sectors such as construction, financial services, engineering, pharmaceutical, and sales and marketing.

In the allocation of green cards, regard will also be had to the skills, qualifications and experience of the workers. The number of green cards will be kept under constant review to ensure that it is not excessive, given the small size of our labour market.

The second key feature of the system is that green cards will be issued for two years initially, with the possibility of permanent or long-term residence after that. Third, green card holders will be permitted to bring their spouses and families to join them immediately and their spouses will have the right to work without a work permit.

With the implementation of this new green card system the existing work visa-work authorisation system, which has addressed our needs in this area until now, will be discontinued. The new green card will ensure that we can attract and retain the skills we need to move our economy to one based on innovation and knowledge.

The second pillar of our new employment permit system is the re-establishment of the intra-company transfer scheme. This scheme is strictly for temporary management level transfers within a company or group of companies and will allow for the temporary transfer of key management staff from overseas companies to offices in Ireland for a period of up to five years. This scheme will bring Ireland into line with current best international practice.

The third pillar of our system will be a revised work permits system in which work permits will be required to be applied for in respect of both those occupations in the annual salary range from €30,000 to €60,000 for which green cards will not be issued and a limited number of occupations below an annual salary of €30,000 where there are significant labour shortages; these occupations will be identified following advice from the expert group on future skills needs. In both cases a labour market test, including advertisements in the national or local press showing that the positions could not be filled from within the EEA, will need to be met. Work permits will be granted first for a period of two years, followed by a further period of three years. The fee will be the same as now, €500 per annum, in other words, €1,000 for the first two-year period, and €1,500 for the following three-year period.

The other key objective of this Bill is the provision of a number of new important protections for migrant workers. These include the granting of both the employment permit — whether the work permit or the green card — to the employee, rather than to the employer. The Bill allows both the employee and the employer to apply for an employment permit, whether it be a work permit or a green card, based on an offer of employment. I expect that initially the employer will continue to apply for the work permit. This will facilitate the enforcement of employees' rights and traceability.

The employment permit will contain a statement of the rights and entitlements of the migrant worker, including that the employee may change employment through the application for another permit by a new employer. This will provide migrant workers with greater freedom and flexibility. The Bill prohibits employers from deducting from remuneration any expenses associated with recruitment and from retaining personal documents belonging to the employee. The Bill will introduce significant penalties for breaches of the legislation, comprising fines to a maximum of €50,000 or terms of imprisonment not exceeding five years.

Following my announcement on 12 April 2005, 31 inspector posts have been sanctioned for the labour inspectorate. This represents almost a doubling of inspectorate personnel in the last 12 months and is indicative of my determination to ensure compliance with employment rights legislation. It is important to stress that the labour inspectorate operates without any differentiation with regard to worker nationality, as statutory employment rights and protections apply to immigrant workers in exactly the same manner as they do to native Irish workers. Inspectors pursue allegations of worker mistreatment and when evidence of non-compliance with the relevant employment rights legislation is found, the inspectorate seeks redress for the individuals concerned and, if appropriate, a prosecution is initiated.

There are currently 20 officers serving in inspector posts and, following a competitive interview procedure, a further 11 officers will be appointed. I anticipate this entire process being completed at the end of this month or very soon afterwards. However, the breadth and complexity of the inspectorate's remit is such that considerable training is required. Initially, much of this training is undertaken in the company of an experienced officer who will take time to explain the issues at hand and assist the trainee inspector in developing the skills and confidence necessary to take on tasks alone. A new initiative in this regard is the assignment of an officer to oversee and manage the training and development process in respect of this significant influx of new officers to duties in the inspectorate.

When these officers are fully operational they will be concentrating on those employment sectors that have traditionally required considerable attention from the inspectorate. These would include the construction sector and the services sectors that are covered by employment regulation orders such as hospitality, cleaning and agricultural work. It is notable that many migrant workers are currently employed in these sectors.

Apart from the strengthening of staff resources, other initiatives are also under way. Arising from a commitment in Sustaining Progress, and in order to assist in the preparation of proposals for consideration by Government, a discussion document was prepared by the labour inspectorate concerning its mandate and resourcing. This comprehensive discussion document was prepared and circulated to the social partners in January of this year.

The document covered the full dimension of issues that impact on the operation of the labour inspectorate ranging from the legislative framework right through to operational issues and staff development. The discussion document looked at a range of possibilities around the operation of the inspectorate and offered a spectrum of options ranging from a compliance regime where the initiative would move more toward the aggrieved employee, with the labour inspectorate offering support, to a model where the right of initiative would essentially remain with the inspectorate which would continue to adopt a hands-on approach.

The discussion document is not prescriptive but seeks to present both sides of the argument on an extensive range of issues impacting on the mandate and associated resourcing of the labour inspectorate, together with its linked business units. The primary purpose of the document is to stimulate debate and to signal that fundamental changes in the approach to the enforcement of employment rights compliance should be considered.

The document has been well received among the social partners and the parties are now well advanced in their consideration of the more than 40 proposals on the agenda. The objective is to formulate a set of recommendations for Government arising from the various possibilities presented in the discussion document. The issues being discussed include concerns expressed by the social partners and other Departments. It is intended this process will feed into and complement the up-coming discussions in the context of the negotiations of a new national social partnership agreement.

A proposal of particular interest is that a strategic programme of education and information dissemination on employment rights be undertaken from early next year. It is intended that all general communications media will be utilised in order to underpin message delivery to the respective target audiences. The programme will embrace the demand to target messages to workers in specific sectors and to meet the challenge of informing people who do not have sufficient English for it to be an effective working language for them.

I will now describe the details of the Bill's provisions section by section. Section 1 provides definitions for certain terms used throughout the Bill. In addition, subsections (2) and (3) cover the circumstances under which a recognised employment agency enters into a contract with a person to work or perform a service for a third party. Effectively, employment agencies may not apply for an employment permit on behalf of a third party. Section 2 amends section 2 of the Employment Permits Act 2003 to allow the employment of non-nationals in accordance with the provisions of section 7.

Sections 3 to 6 state the various conditions under which an application for an employment permit can be made. In particular, section 3 provides for the making of an application and outlines the four categories of persons who may apply for an employment permit under this Bill, namely, an employer in the State, non-national, a foreign contractual service supplier, and any other person party to the employment of a non-national in the State. Section 4 provides that all employment permits are granted to the non-national employee, irrespective of who applies for the permit. This is one of the more significant changes that the Bill proposes. Work permits are currently issued to the employer but granting them to the employee will increase the power of migrant workers in the employment relationship. Section 5 specifies the information to be provided in an application for a permit other than by a non-national, that is, applications by employers. The information required mirrors existing specifications with regard to work permit applications. It ensures the proposed non-national candidate has the necessary skills, qualifications and-or experience for the position and that the position is of a nature that requires it to be filled by a non-national. Section 6 specifies the information to be provided in an application for a permit by a non-national, that is, in applications for green cards by non-national employees. This information is currently required to be provided by applicants for a work visa or work authorisation, which is the precursor of the green card.

Section 7 provides for the granting of employment permits by the Minister. This is a fundamental part of the employment permit process which, until now, has not been provided for in legislation. It provides for the granting, by regulation, of permits of unlimited duration to non-national applicants, effectively allowing the establishment of the green card system.

Section 8 provides for the issuing of employment permits granted under section 7 and provides for particular information to be stated on the permit. An employment permit granted under section 7 shall be issued to the non-national employee. Where the application was made by the employer, a copy of the permit will be issued to him or her. Information relating to the rights and entitlements of migrant workers, including their remuneration and a statement of the national minimum wage, the right to change employers and the prohibitions set out in section 22, will be stated on the permit. As I said earlier, these new provisions will increase the awareness of employment rights among migrant workers and will increase their power in the employment relationship.

The provisions of section 9 are designed to meet our EU Treaty Community preference obligations not to grant an employment permit unless it has been offered to EU nationals first. Section 10 stipulates further conditions for consideration when granting of work permits including ascertaining the legitimacy of applications for employment permits, the economic policy of the Government at the time and the terms of any regulations in force with regard to the granting of employment permits.

Section 11 outlines the conditions for refusal to grant an employment permit and the procedures to be applied when an application has been refused, while section 12 provides for review procedures in the case of a decision to refuse to grant an employment permit under section 10.

Section 13 deals with the making of regulations governing the granting and renewal of employment permits, including limiting the number of permits granted, the categories of employment and qualifications or skills and the period covered by the permit. This section together with section 14 enables the Minister to monitor and adjust the employment permits system in line with prevailing economic conditions. Section 14 specifies the criteria that must be observed when making regulations under section 13. These criteria relate to economic and social development and competitiveness in the State.

Section 15 lays down the conditions under which the Minister may revoke an employment permit and sets out the conditions that determine at what stage the revocation will take place while section 16 provides the conditions under which a decision to revoke an employment permit may be submitted to the Minister. The conditions of section 16 largely mirror those outlined under section 12, which deals with the review of the decision to refuse to grant a permit.

Sections 17 to 18 describe various misuses of employment permits that are prohibited and provide that persons in contradiction of these provisions are guilty of an offence. Such misuses include forgery and fraudulent use, alteration of employment permits or illegal transfer of permits.

Section 19 provides for the renewal of employment permits in various circumstances. A significant aspect of this section is its provision to allow the renewal by regulation of permits of unlimited duration to non-national applicants, that is, to green card applicants. This, in effect, grants the right of permanent residency to them. Applicants must confirm that they have complied with the terms of the permit and of this Act up to the point of application for renewal, if deemed necessary. As is the current practice, it is not necessary for them to undertake a labour market test to ensure that the skills deemed necessary for the employment cannot be sourced locally.

Section 20 allows for the cessation and reinstatement of employment permits while section 21 provides for the appointment and conditions of officers authorised for the purposes of the Act. In practice, the Garda national immigration bureau enforces the law with regard to illegal working. The labour inspectorate of my Department has responsibility for the monitoring and enforcement of rights, protections and entitlements under employment protection legislation.

Section 22 provides additional statutory protection for migrant workers, including prohibiting employers from either deducting recruitment expenses from remuneration or from retaining workers' personal documents, including passports. Any employer who contravenes any of the provisions of this section is guilty of an offence.

Section 23 provides for the circumstances pertaining to the surrender of an employment permit, namely that the holder is obliged to return the permit to my Department within four weeks of the date the employment ceased. Section 24 relates to the provision of false or misleading information, which is an offence. Under section 25 employers are obliged to retain, make available and furnish to an authorised officer, if requested, books, records and accounts concerning a non-national employee. A person who contravenes this section is guilty of an offence.

Section 26 provides for the establishment and maintenance of a register of employment permits granted under the Act. This information is already recorded by my Department. Section 27 enables the Minister to make regulations to govern the procedures for the application for, and renewal of, an employment permit. This section deals primarily with administrative matters.

Section 28 provides for the making of regulations on a range of issues referred to in the Act and provides for their laying before the Houses of the Oireachtas while section 29 provides for the serving of notices and their requirements.

Section 30 provides for penalties and proceedings with regard to offences committed under this Bill. On conviction for an offence under this Bill a person may be liable for a fine from €5,000 up to €50,000 and-or imprisonment for a period from 12 months up to five years. Section 31 qualifies section 30 by setting out a standard provision regarding offences by corporate bodies and places responsibility for such offences on individuals, where appropriate.

Sections 32 to 36 provide for the delegation of certain functions to officers, transitional arrangements for permits currently in force, aligns the definition of non-national to conform with the definition in section 1 of the Immigration Act 1999, provides sanction for the expenditure incurred in the implementation of this Act and the preliminaries common to all legislation.

Since the publication of the Bill last June, the Forfás expert group on future skills needs has completed its work and its report will be published in the near future. In order to take account of its findings, the Bill as published will require some amendments, which I will bring forward on Committee Stage. The amendments will also include one to cover whistleblowers, to facilitate those who wish to expose illegalities under this legislation.

There is no doubt that the successful performance of the Irish economy over recent years in terms of growth and job creation has been phenomenal. There is equally no doubt that in order to sustain economic growth going forward, we must ensure we position our economy as one that is both knowledge-based and innovation-driven. To do this requires labour force policy action on three fronts. The first priority is to up-skill our own workforce. We must also maximise the potential for European Economic Area nationals to fill most of our skills deficits from the EU labour force of 200 million. Finally, we must supplement these actions with the efficient, flexible, strategic, managed and skills-based immigration policy I have announced today. This is a key part of our policy that will enable us to meet any deficits we have for high level and strategic skills.

The Bill also increases our protection of migrant workers in a number of key respects. It is essential that workers from abroad enjoy the same rights and protections as Irish national workers. Together these twin elements of the Bill will ensure that our economy and labour market will continue to be successful, sustainable and fair. I commend the Bill to the House.

See this speech in context