Phil Hogan (Carlow-Kilkenny, Fine Gael)

Fine Gael supports the Protection of Employment (Exceptional Collective Redundancies and Related Matters) Bill 2007. We understand the background to the Minister of State's decision to introduce it. The Government was forced to act following the disgraceful events at Irish Ferries. I am disappointed that the workers at that company had to suffer before the Minister of State and his colleagues were alerted to the shady practices in question. This legislation will help to ensure that no such practices are encountered in future. It was unacceptable that Irish Ferries was given €4.3 million to meet the cost of making statutory redundancy payments to more than 400 Irish staff who were replaced by eastern European workers on lower pay.

The Bill before the House will establish a redundancy panel, drawn from the social partners, which may ask the Minister for Enterprise, Trade and Employment to refer dismissals to the Labour Court to determine whether they are genuine. It is entirely right that the Minister will be able to refuse to pay a redundancy rebate on the basis of a Labour Court decision. This Bill is a reflection of the new challenges faced by the new Ireland. We used to struggle to keep workers from leaving, but now we are struggling to stop the jobs we have in abundance from being devalued.

Fine Gael watched the unfolding events at Irish Ferries with a growing sense of disgust. The company's actions constituted the worst type of Dickensian exploitation we have ever seen in this country. It should be borne in mind that Irish Ferries is an Irish company that is based in Ireland. Therefore, it should be subject to this country's laws, including the legislation that provides for the minimum wage and the protection of employees and health and safety matters. Some form of legal nonsense got in the way of proper industrial relations procedures. This Bill has been introduced as a result of the actions of Irish Ferries, which was intent on maximising profits. It was not just seeking a cheaper labour force; it was looking for a criminally cheap labour force. We have established an industrial relations infrastructure that requires all sides to enter national agreements and to ensure give and take to allow for profitable companies and a strong enterprise culture but also decent pay for workers. That legislation has protected Irish workers from having jobs replaced by new arrivals. Irish Ferries has brought about a new situation that we must discuss now. The management of Irish Ferries should have been loyal to the social partnership process and those who helped it become a profitable company. I wonder if it can count on the loyalty of Irish people and depend on the loyalty of exporters, importers and tourists who were badly treated and inconvenienced throughout this drama.

I wish to raise two industrial relations matters in my constituency, one of which has ramifications outside the constituency. The Minister is aware of the position at Comerama. A commitment was given by the then Minister for Enterprise, Trade and Employment, Deputy Harney, to pay the enhanced redundancy payment arising from discussions at the national agreement. It was agreed to review the payment of one week's wages for every year worked and increase it to two week's wages. A commitment to include this was made in 2003 but legal matters and advice from the Attorney General subsequently prevented Comerama workers from benefitting from it. The workers have been denied some €900,000, or €10,000 per worker because the commitment, given in the presence of Oireachtas Members in the constituency and trade union officials, was not honoured. Despite this, SIPTU was prepared to ring-fence the problem and discuss how we could achieve most of the spirit of the agreement. Workers and shop stewards proposed certain results in good faith, based on the commitment provided by the then Minister, but the agreement was not implemented. Notwithstanding the number of times this matter has been examined by the Minister of State, the Minister and the Government it should be examined in the context of this Bill to provide a solution to the injustice inflicted on Castlecomer workers. All Oireachtas Members played a meaningful part in resolving this.

I am gratified that the dispute at Greencore, Mallow seems to be reaching an end following a decision by workers and the company to accept the Labour Court ruling. It took the company a considerable period to confirm it would abide by its obligations. The issue for beet growers remains unresolved and I regret the company has sought a judicial review. This will have a detrimental effect on payments to growers and could also have implications for former workers at Greencore in respect of pensions. The court case could be lengthy and will hold up payments to former Greencore staff and growers. The factory in Carlow closed in January and we face a further delay amid continuing uncertainty about payments. There is also concern that growers might have to pay tax on their compensation, something about which farmers are very unhappy. Will the workers and growers be treated in a manner similar to Irish Ferries workers? Clarification is needed.

Greencore has already received 7% of the EU compensation and has seen its share price increase substantially. I urge the Minister of State to ensure justice is done in this area. Local authority members in Carlow and Cork should ensure the planning classification of valuable sites in those areas is put on hold until these matters are resolved.

I wish to raise the issue of immigration and job displacement. Fine Gael and Labour sought a dialogue on immigration to Ireland to ensure the seeds of resentment and racism are not sown in this country. Events at Irish Ferries can only contribute to this. The recent dramatic growth in the rate of immigration to Ireland is resulting in what is arguably the greatest economic and social transformation of our country since independence. The transformation presents Ireland with both a major challenge and a major opportunity. Given Ireland's history of emigration and migration, we have a special responsibility to address the challenge of immigration. As Deputy Kenny stated earlier this year, as a people we understand better than most the special challenges of immigration and integrating new communities. It is time for a real national debate on these issues so we can make the necessary changes to meet these challenges. We have a chance to get this response right and to avoid the mistakes made elsewhere. Immigration and multiculturalism can be good for Ireland but the current system is not being managed well. Too many Departments and agencies are involved. We need a system that is good for the Irish and good for the immigrants. The current system serves the interests of neither.

Fine Gael has three priorities to make immigration work for Ireland. Immigrants have rights and responsibilities. They should have the right to be free of discrimination and have their contribution to the country recognised but they have the responsibility to integrate into our community, comply with our laws and respect our cultural traditions. We do not want to see a situation developing in which our immigrant population lives a separate life. We have a responsibility to facilitate and encourage this integration.

Immigration must be managed in a way that keeps Ireland safe. We must ensure Irish laws are understood and adhered to by immigrants and Irish citizens. We must send a strong message that people who want to come to this country to commit serious crime are not welcome and will be dealt with severely.

Critically, and most importantly in the context of this Bill, immigration must be a force for improving, not threatening living standards. We must protect Irish jobs and the rights of those who come to work here. As a small, open economy with a population that travels freely we must ensure the benefits of Irish workers and expertise travelling worldwide and those from other countries coming here continue. Living standards should not be threatened on either side. Companies that pay below the minimum wage should pay severe fines, and immigration levels from non-EU countries must be explicitly linked to economic conditions and the needs of the labour market.

In discussing this Bill I must address the issue of job losses and costs. Ireland has managed to sustain significant economic growth by attracting foreign direct investment but the sequence of high-profile job losses in various multinational companies is a worrying trend. It has become common practice for many high-profile companies to engage in global rationalisation, a code word for moving jobs from Ireland's high cost base. Since 2001 the Government has been warned by the National Competitiveness Council of the dangerous direction that policy was taking in respect of business costs. Nothing has been done to address the problems of energy, broadband, telecommunications, and other infrastructural problems to ensure the Irish economy is well-equipped to tackle the fierce competition we experience. Since this Government came to power it has imposed at least 50 stealth taxes and charges on businesses and consumers. Compared with the UK, electricity costs are 50% higher, landfill costs are 350% higher, insurance is 20% higher and broadband is 10% higher. Meanwhile, inflation continues to rise and now stands at 4.9%.

Competition from eastern Europe, India and China remains in its infancy but is likely to intensify significantly in years to come. No Government can afford to bury its head in the sand. All parties must consider how to cope with the enormous competition we face from overseas, in light of the burgeoning cost base in Ireland. This is essential if are to protect the strong economic base built up over the past 20 years, including the years of the Celtic tiger.

We must also ensure we are able to position Ireland as a country that can compete with other jurisdictions for the high level of graduate employment and companies that respect the Irish education system. We must provide for the upskilling required to ensure we continue to be at the cutting edge as leaders in providing the type of labour required for many of the companies that wish to come to Ireland. We cannot be complacent as regards low levels of unemployment because we can all see challenges on the horizon that must be dealt with effectively and in the context of ensuring that our high cost base does not continue to ratchet upwards. Otherwise we will have redundancies to deal with, which is unsavoury and throws up enormous difficulties for the workers concerned. Opportunities exist for people to get alternative employment, but we must ensure this continues to be the case in the event of companies finding themselves in difficulty.

Our economic situation is strong. This must continue and hopefully the potential exploitation we witness by one particular company managing to exploit a maritime law loophole can be protected by the enactment of this legislation so that the word goes out that companies which do not treat their employees properly, and where workers are exploited, will not get succour in this legislation. The co-operation between workers and employers which has been built up over 20 years must continue so that social partnership may continue in the spirit of co-operation we have seen. The amendments needed to sustain social partnership in the future must be brought forward in the principle of co-operation between employers and workers in the context of this legislation, as enshrined in Towards 2016, and must continue to be implemented.

Fine Gael will support the legislation. We may put forward one or two amendments to the legislation next week and I ask the Minister of State to reflect on some of the issues, which may seem somewhat parochial, given the age we live in. I am sure, however, he will come back to me in his usual diligent manner to deal with the difficulties in Kilkenny and Carlow, in particular as regards Greencore and the Comerama workers.

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