Paul Kehoe (Wexford, Fine Gael)

I very much appreciate the opportunity to raise this matter in the House. While I having nothing against the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Kelleher, I am very disappointed the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Mary Coughlan, is not present. The issue I wish to raise is serious and the Government is not addressing it in the manner it should, especially given that we should be retaining jobs in various sectors. I have no doubt the Minister of State is well aware of the matter I am raising because many of my colleagues have raised it before. I raise it because many people have asked me to make representations on their behalf, particularly those involved in the restaurant, hotel and security businesses.

In recent days, it has come to light that hotels, restaurants and security firms are being forced to close shop and let go employees. They do not want to have to do this. The current circumstances are extremely difficult and should not be allowed to obtain in view of the current economic climate, in which businesses are struggling to survive and in which every attempt is being made to reduce costs across the board. I call on the Minister to address immediately the problem and use her clout to make changes in this area.

Employment regulation orders were introduced some years ago and force the paying of workers double time on Sundays. There are a number of small restaurants in County Wexford in which the workers are quite happy with their current terms and conditions. However, NERA has been using bully-boy tactics to address issues in respect of the restaurants, sometimes at the busiest of times, such as when they are full on a Saturday night. NERA representatives force the managers to address what is happening. NERA was not set up to use bully-boy tactics where genuine people are doing genuine business and doing their best. It is totally impractical for NERA to continue with the bully-boy tactics it has shown in recent times. I urge the Minister of State to use his good offices to reverse what is happening in terms of how NERA is doing its job. In many instances NERA is acting against the wishes of employees, who have the foresight to recognise that any attempt to introduce wage increases in the current economic climate would be completely counter-productive and, ultimately, would be more likely to result in job losses than anything else.

The situation is completely at odds with what we are led to believe is current Government policy. Government officials are involved in protracted negotiations on the implementation of a pay freeze in the public sector, yet a Government agency is tasked with ensuring private sector employers meet obligations drawn up against the backdrop of a starkly different economic environment.

The catering and security industries are two sectors in particular where difficulties have come to light in the recent past. I have been given detailed examples of a security company's contract to a Government body, namely, the Health Service Executive, for the past three years. As part of the contract the security company must meet increases agreed by the joint labour committees. However, the HSE has written to the security firm in recent weeks to say it will not pay any increases in 2009, yet the security firm is expected to pay increases in 2009. The Minister of State is a very level-headed man and he will understand the difficulties involved for a company that is being forced by one arm of the Government to pay increases while another arm of the Government has stated its intention not to pay increases. I hope the Minister of State can understand the difficulty this business is experiencing. What will happen is the business in question will go to the wall because of the increases it is being forced to pay its employees.

The very same thing is happening in the catering industry. I am aware of many small restaurants in my county and elsewhere in the country that are being forced to close. Many hotels have been forced to close also because of the bully-boy tactics employed by NERA. I urge the Minister of State to use his good offices to change the regulations in place to reverse what is happening and to accept the common-sense approach these ordinary business people wish to adopt.

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