Micheál Martin (Cork South Central, Fianna Fail)

A cross-departmental approach is needed to tackle the hidden economy as no Department in isolation can deal with it. We are anxious and committed to undermining the black economy because it affects the entire edifice on which most of our social progress is based and on which legitimate business is carried out. However, the Revenue has a significant role to play on the working group with ISME, SFA, CIF and ICTU. That group could make a co-ordinated attack on the hidden economy.

Labour law compliance is important in tackling this part of the economy. We made a positive contribution to the new social partnership agreement, particularly in paragraphs 11 to 26, inclusive, which deal with labour law compliance and employment rights. There is a strong shared commitment between the social partners and Government to improved compliance with legal requirements underpinned by strong enforcement. A major package of measures has been agreed such as the establishment of a new statutory office for employment rights compliance.

Significantly, similar to the ODSCA, the new office will have clear links to Revenue through the memorandum of understanding and the legal underpinning of its establishment. The office will be permitted to share information with the Revenue. Such co-ordination is needed to crack down on much of the illegal activity as people avoid taxation and various other legal requirements. The new package of measures, outlined in paragraphs 11 to 26, inclusive, of the new agreement manifests a strong commitment on my behalf and that of the Department to tackle the hidden economy effectively and in a co-ordinated manner with other relevant authorities.

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