Pat Breen (Clare, Fine Gael)

I wish to share time with Deputy Perry. This Government's record on the protection of workers' rights is a disgrace. In the cases of Gama, Irish Ferries and immigration, it has failed to offer protection. It has allowed a bizarre level of hysteria about the services directive to permeate political discourse in this country without making any effort to dispel the myths that were circulating. Perhaps it did this to suggest Fine Gael and Labour were implacably opposed to each other's views. In the European Parliament the EPP, of which Fine Gael is a part, and the Party of European Socialists, to which the Labour Party is aligned, crafted an improved version of the directive and this is depressing news for those seeking to perpetuate that mischief.

This debate is framed by the European debate, exploitation of migrant workers, recent disturbing developments in Irish Ferries, the country's continuing deterioration in competitiveness and the declining manufacturing sector. Concerning the EU services directive, I am delighted the Single Market is finally being extended to this part of the economy. Fine Gael supports the directive for the following reasons. It will help boost economic growth and sustainable jobs.

Since 1993 the Internal Market has created almost €1 billion in prosperity and 2.5 million jobs. It can deliver much more if we can create a real Internal Market for services. It will make it easier for businesses, especially small and medium enterprises to provide services throughout the EU. This will increase cross-border competition in services markets, bringing down prices and improving quality and choice for consumers. It will remove pointless red tape by simplifying the authorisation and licensing regimes with which businesses must comply. Businesses will be able to complete any necessary formalities electronically and through one point of contact.

It will improve co-operation between national authorities in different member states to protect and inform consumers and to combat rogue operators or illegal work. It will help stop discrimination against consumers on grounds of nationality. For example, differing entry fees to museums or cultural events could not be imposed on tourists on the basis of their nationality. It will clarify the conditions under which patients are entitled to reimbursement for medical care obtained in other member states to ensure that they can benefit from a better choice of high quality treatment.

I am delighted at the resolution of the problem surrounding the country of origin principle. This would have allowed for the employment of non-national labour at the minimum wage rates and employment standards of the employer's country of origin. This would have endangered the livelihoods of national workers and would have been unfair to non-national workers who deserve the same minimum standards as everyone else.

We have seen the danger this poses when a similar situation unfolded at Irish Ferries. Fine Gael watched the unfolding events at Irish Ferries last year with a real sense of disgust and horror. The actions of the company were an example of the worst type of Dickensian exploitation seen in this country. Irish Ferries is an Irish company based in Ireland and should be subject to the laws of this country, including legislation that provides for a minimum wage, employee protection and health and safety. As a result of legal nonsense, it was almost allowed to get away with industrial murder.

The debate on Irish Ferries was never about immigration, globalisation or free market economics. I believe in an open market, a flexible employment atmosphere and the value of non-nationals coming to this country to work. That debate was about a greedy, grubby company intent on maximising profits that was not just seeking a cheaper labour force but a criminally cheap labour force. Ireland has established an industrial relations infrastructure that ensures workers from new countries are paid a decent wage and are not exploited. That legislation protected Irish workers from having their jobs replaced by new arrivals to our shores.

For no good reason, Irish Ferries believed it did not have to obey those laws. It ran roughshod over 40 years of industrial diplomacy that had helped create the Celtic Tiger from which all of us, including Irish Ferries, have benefited. The Government had no solution to this problem. It empathised, showed concern and ticked off but it did not govern. In an effort to be helpful my colleague Deputy Perry suggested approaching our colleagues in the European Union to outlaw the practice of reflagging throughout the EU. It is only by doing this can we rid the seas and this country of the cancer of exploitation that Irish Ferries was intent on spreading through the body politic.

The Irish people have repeatedly shown their support for the European Union. It is through the EU that we must approach this and ensure the activities of Irish Ferries are deemed illegal just as they have been deemed immoral by everyone in this country, with the exception of representatives of certain august bodies who should know better.

The management of Irish Ferries should have been loyal to the social partnership process. It should have been loyal to the people who helped it become the profitable company it is now. Can it count on the loyalty of Irish people, exporters, importers and tourists who have been so badly treated and inconvenienced throughout this whole sorry drama?

Fine Gael believes the country should be honest about the need for immigration, the benefits it can bring and the repercussions of not welcoming inward migration. Ireland must import the skills to ensure it remains a world class player. With performance fuelled by immigration, the economy has the potential to post cumulative growth of 45% between now and 2016 according to commentary from Goodbody Stockbrokers. Growth of this magnitude would see Ireland expanding at more than twice the rate of the average eurozone economy over the next decade. Goodbody stated that, for this trend to be achieved, inward migration will play a vitally important role. The Government must adopt an integrated, planned immigration policy. Today, immigration policy is shaped by political kite flying such as the recent news on a green card system, which might get a Minister through a news cycle but does not provide an alternative.

Let us be honest, establish the economic case for immigration, set a level and establish and enforce a sensible, compassionate immigration policy that will allow the engine of the economy to continue running. I note that the Economic and Social Research Institute has predicted growth of 5.7% this year and a similar figure next year and has called for immigrants to be given the fullest opportunity to contribute to the economy. It stated that research showed immigrants in Ireland were not using their qualifications to their full potential, with many holding jobs for which they were over-qualified. As a modern European nation, there exists an economic imperative as well as a moral duty for us to accept immigrants. The ESRI paints a picture of educated teachers, doctors and lawyers arriving here in an effort to improve their lot and failing to have their expertise recognised and valued.

We should never lose sight of the fact that to have social justice, fair wages and fair work practices, we also need jobs. We must improve our competitiveness to ensure those jobs are created. Two years ago the Government promised to keep down personal and business taxes to strengthen and maintain the competitive position of the economy. In the following years it implemented 41 stealth tax rises which cost the average family €1,800 per year. The average tax contribution per household last year increased by €2,800. Between 2001 and 2002, Ireland overtook the UK and Sweden to become the third most expensive country in the EU for consumer goods and services. By 2003, Ireland was almost on a par with Finland as the most expensive country in the eurozone, with both countries significantly more expensive than the next group of eurozone countries. Dublin is the 21st most expensive city in the world, more expensive than Los Angeles, Paris, Miami, Singapore, Honolulu, Vienna, Helsinki and Abu Dhabi. It is the fourth most expensive capital in the EU, behind London, Paris and Copenhagen.

Ireland has dropped from fourth in 2000 to 26th this year in the world economic forum's global competitiveness report, owing mainly to the Government's failure to control prices. This has adversely hit the living standards of hard-pressed workers. The Government must shout "stop" and let anti-competitiveness die a death. Workers in the manufacturing sector are having an especially hard time. The loss of 180 jobs at GN Resound last month, including non-manufacturing jobs transferred to Denmark, was a serious blow to Cork. NEC announced the closure of its plant in Meath, with jobs being transferred to Malaysia. I extend my sympathies to all the workers affected as well as their families.

This is a worrying trend as manufacturing firms are reviewing operations in Ireland with a view to reducing costs by outsourcing to other jurisdictions. This process has been accelerated by the deterioration in our international competitiveness. Ireland has fallen from 4th to 26th in the global competitiveness tables. The most productive and efficient operations risk seeing their jobs transferred overseas. To date the Government has ignored the competitiveness challenge, in spite of repeated warnings from Fine Gael, the National Competitiveness Council and other agencies. The latest inflation figures confirmed that the Government remains one of the key factors in driving up costs, through a slew of stealth taxes on essential services.

The reality of outsourcing and the loss of jobs to cheaper overseas economies must he addressed. Fine Gael calls on the Government to implement a series of key measures to reverse the trend. These include appointing a single regulator to control costs and open up sheltered sectors of the economy; "business-proof" all legislation before it is passed into law; ensure adequate access to broadband throughout the country; and keep Government prices at or below inflation level.

Fine Gael cannot support this motion in its totality. Fine Gael is strongly supportive of good employment standards. We must ensure exploitation does not occur. We do not need a separate Department with responsibility for labour or mandatory trade union membership.

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