Phil Hogan (Carlow-Kilkenny, Fine Gael)

I have a little problem with the issue of temporary workers. Ireland has bilateral agreements with a number of countries regarding employees working in this jurisdiction on a temporary basis. In addition, PRSI exemptions are provided under Article 97 of SI 312 of 1996, which is subject to abuse. The scheme is operated by the Department of Social and Family Affairs. I refer to the number of exemptions issued in recent years.

For example, GAMA Construction competes for infrastructural projects, particularly roads projects, against domestic companies. In 2002, 290 PRSI exemptions were issued, of which GAMA received 92, while in 2004 603 exemptions issued, of which 347 were awarded to GAMA. Up to the end of May 2005, 313 exemptions had been issued, of which 288 were given to GAMA Construction. This is an abuse. This company is tendering for projects against domestic construction companies but it can use the PRSI exemption to reduce labour costs when submitting the tender. GAMA recently tendered successfully for the Castleblayney road project at a cost of €58 million, but the PRSI exemption could be worth 2% of a saving on the contract for the company, which is a decided advantage for it.

If tenders are awarded to companies on the basis of PRSI exemptions, a level playing field must be provided and, therefore, such exemptions should be factored into the tendering process. It is unfair that domestic contractors must compete against a foreign company which is given a 2% advantage in labour costs from the outset. Labour costs account for one third of a contract. Contracts are, therefore, skewed in favour of GAMA Construction. Ironically, at the time the Castleblayney contract was being adjudicated on, the company was under investigation by the Minister's Department. It is not fair, particularly since GAMA was not sanctioned for being up to its neck in labour issues but instead was rewarded with a €58 million contract in Castleblayney and given an advantage in the tendering process though the PRSI exemption granted by another Minister.

Does the Minister intend to make more resources available to the labour inspectorate and other bodies which will enforce the legislation? How does the Department intend to communicate these new rights to migrant workers? What mechanism will be used to give them the information? How does the Minister intend to co-operate with foreign embassies in ensuring these rights are translated into meaningful improvements for migrant workers, given the linguistic difficulties involved? A number of interdepartmental initiatives involving the Departments of Education and Science, Foreign Affairs and Justice, Equality and Law Reform are required to ensure everyone understands our system. It is not desirable that one arm of Government does not know what the other is doing.

Our international reputation took another hit last month when the Polish edition of Newsweek reported that Ireland was a living hell for many Poles, who arrived expecting to be able to pick and choose jobs because we are advertising job opportunities and stating we have no workers. Instead the Poles found themselves sleeping rough and living on charity. The Polish Embassy has suggested that around 10,000 Poles living in this country are experiencing difficulty. The astounding thing about this situation is that it is not just the "pinkos", as the former Minister for Finance would have referred to them, who have highlighted this issue.

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