Micheál Martin (Cork South Central, Fianna Fail)

That is why I am satisfied that we have a realistic minimum wage here. The potential to re-flag in the maritime sector would appear to put the employment of seafarers beyond the minimum wage regime here. Therefore, directly comparable situations do not arise in other types of employment. However, there are issues arising from recent events which we all need to consider, including the arrangements for repayment of part of the cost of redundancy settlements to employers and the adequacy of our industrial relations framework in circumstances such as this. Furthermore, I wish to make it clear that the Government did not agree to immediate access to the Irish labour market by citizens of the new member states in order to displace Irish workers. Having said that, I recognise that commercial reality and competitive pressures will impact on employment here which is not sustainable. The best defence for all of us against these pressures is to ensure that our approach to wage bargaining reflects competitive realities, that our workers are encouraged to update their skills in line with technical progress, that our industrial relations practices foster flexibility and change in order to boost productivity, and that our support for workers who are affected by change is timely and effective.

There has been informal contact with the Irish Congress of Trade Unions following its decision to postpone the commencement of talks on a new social partnership agreement. Ministers and officials from a number of Departments, including my own, met ICTU representatives over recent weeks. The Taoiseach also met ICTU on these issues. This provided a useful opportunity to elaborate on the key issues and to ensure that there was at least a shared understanding of the difficulties.

As Deputies know, the Government has already communicated its intention to engage fully and effectively in the process of devising policies and measures which would protect employment standards and arrest a race to the bottom in terms of employment practices. I am confident a successful response to these issues can be found for our economy, where the particular characteristics, legal and otherwise, of the marine sector do not apply. I believe they are best found within the context of a social partnership agreement which continues the stability and progressive modernisation of our labour force and employment practices in order to sustain jobs and living standards.

I view with great concern the potential social implications of the displacement of workers on established conditions in favour of those willing to do the same jobs on much poorer conditions. The Taoiseach is on record in stating that we want to see greater productivity and enhanced competitiveness based on new products and services, improving staff skills, new work practices and technological innovation. We do not want to see people building competitive advantage based on poor wages, casualisation of labour, low health and safety standards or other poor compliance practices. Not only is it wrong, it is not sustainable.

It would be useful if I addressed an accusation being made by Deputy Rabbitte and others that there is some connection between the Taoiseach's recent statement as regards the scope for action by the Government and Irish Ferries' outrageous behaviour.

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