Fiona O'Malley (Dún Laoghaire, Progressive Democrats)

That has not been acknowledged by the Opposition, however, deliberately or otherwise.

When the Minister challenged the House last night to demonstrate that the services directive, if implemented, would legitimise the treatment of the Gama Construction workers, he was met with hushed silence. He pointed out that the problems in question arose in the absence of the proposed directive. It seems that a welcome but modest level of honesty is finally creeping into the debate on this issue. An article in last weekend's The Sunday Business Post referred to the acknowledgment by trade unions that the proposed directive, which incorporates the country of origin principle, expressly does not allow, for example, Latvians to be paid Latvian wages for working in Ireland. It has been clearly stated that such practice is already prohibited by European law in the form of the posting of workers directive and by Irish law in the form of the Protection of Employees Acts.

Opposition Deputies have referred to well-founded fears that the services directive will be used by some employers to undermine established rates of pay, as well as safe and reasonable working conditions. However, no consideration has been given to Ireland's comprehensive body of employment rights legislation which protects employees against arbitrary behaviour by employers, for example, in the area of health and safety.

Members of the Opposition, especially Labour Party Deputies, have shown their brass neck by lecturing people — I refer especially to Progressive Democrats Members — on issues such as the minimum wage. I am sure they will not like to be reminded that the former Minister for Enterprise and Employment, Deputy Bruton, and his Minister of State colleague in the rainbow Government, Deputy Rabbitte, sat idly by whereas the next Minister to have responsibility in that sector, the current Tánaiste, introduced this country's first national minimum wage. The Members opposite are not in a position to lecture anyone on the issue of workers' rights.

Fears have been expressed about downward pressure on wages as a result of the proposed directive. Such fears are based on the approximately twofold difference between the average industrial wage in Ireland, which is approximately €30,000, and the annualised minimum wage rate. The Opposition's lack of understanding is again evident in this instance. If the directive is not put in place, it will continue to be the case that anyone can establish a business in Ireland and offer to pay workers the national minimum wage. Reports indicate that very few people are prepared to work under such conditions for any significant length of time. The reality is that employers in Ireland find themselves having to pay higher, rather than lower, wages. The general thrust of the Technical Group's motion is that the proposed directive will lead to exploitation or social dumping. If that were the case, the directive would not be supported by the Government. It is as simple as that.

There has been an unfortunate use of language during the recent wider debate on this issue. I have noted the emergence of a viewpoint that favours looking after the so-called natives. When Irish people looked for work abroad in the past, they were confronted with signs saying "Irish need not apply". I hope people are not suggesting that signs saying "Only Irish need apply" should be displayed in Ireland today.

The Labour Party has suggested the imposition of work permits for EU workers as a solution to fears about lower pay and conditions. As my party colleague, the Minister of State, Deputy Parlon, has pointed out, such a suggestion illustrates "questionable political judgement, little or no grasp of economics and wilful ignorance of European law". I accept that the general concern about pay and conditions was reflected in a recent opinion poll. The root of that concern is the idea that foreign workers are willing to work for lesser pay and conditions than Irish workers, thereby replacing or displacing them. The Labour Party must explain how the imposition of work permits on migrant workers will address this issue in an effective manner.

As we consider whether a problem exists to the extent suggested by the Labour Party, we should bear in mind that we are at full employment. That party's recent proposals cement the view that its overall policy framework could threaten Ireland's economic prosperity. The economy needs migrant workers to allow it to continue to thrive. Research indicates that we will have to meet a skills shortage of 30,000 workers per year. If the Labour Party advocates putting a cap on the job opportunities of migrant workers by stopping many of them from working here, many more people will start to believe the Labour Party is a danger to this country's economic prosperity.

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