Mattie McGrath (Tipperary South, Fianna Fail)

I, too, am delighted to have the opportunity to speak to this Bill. I compliment the Tánaiste and the Minister of State, Deputy Calleary, on their work with the Bill to date. The new Minister of State has been only a short time in the job, but he has read himself into the position well and is making an impact as he facilitates all sides of the debate.

The Industrial Relations (Amendment) Bill 2009 is part of a suite of measures, one of which, the Employment Law Compliance Act, is in place. The proposed inability to pay clause has garnered more headlines than any of the Bill's other provision. It has been widely misrepresented and misread. Contrary to popular belief, inability to pay clauses are not new. They already exist, as instanced by the National Minimum Wage Act 2000, and have always featured in national pay agreements. However, they have never been invoked.

The mechanism is now being considered as regards joint labour committees, JLCs, and registered employment agreements, REAs, in response to difficulties in certain sectors. We are well aware of such difficulties in the past 18 months. They have arisen as regards the various working directives and orders for the city of Dublin, Dún Laoghaire and the rest of the country. That clearly was unfair and something of an anomaly for people in business. It was very difficult for them to understand why this should be so. Again, I compliment all concerned, including the Minister of State, in having that anomaly sorted out.

To depart somewhat from the Bill, there are many other areas that affect business, which is the spice of life. We have to promote and support our businesses as best we can in all areas in addition to the legislation before us. Costs, such as electricity, rates charged by county councils, fuel bills, water charges both in and outside business, present major impediments and are forcing people out of business. Wages are only a small part of the overall picture. Health and safety aspects are another consideration.

Another major issue is the unfair dismissals claims being taken against many companies by the "newcomers" from abroad who played an important role in many Irish businesses, not least in the rural economy, in horticulture, construction and catering. These sectors would not have survived in the Celtic tiger interlude without the services provided by these people. However, in too many cases, there have been claims of unfair dismissal and this is a major burden for businesses, large or small. Then there is the whole area of bank charges.

We saw the serious action last week of the air traffic controllers. Serious legislation is needed to prohibit and prevent small groups like this from causing such havoc. Mechanisms and channels are in place to negotiate all such grievances but no group should have the power to literally bring the country to a standstill. Ireland is an island enormously dependent on its airports in particular, as well as its sea ports. Some 20,000 people were inconvenienced and this is not acceptable in these modern times. I appeal to the Government to bring forward legislation to deal with this type of situation.

The purpose of the Bill is to protect the most vulnerable workers in particular, by ensuring that existing mechanisms for making employment regulation orders, EROs, and REAs are fit for purpose and operate effectively. This is particularly important, given the current economic climate. The JLC and REA systems have been the subject of a number of legal challenges recently, which have gone to the High Court. The Bill will strengthen them and make them more effective. It will provide for a number of amendments to the existing legislative framework surrounding the JLC and REA systems, including improved procedures and clear principles and policies to be taken into account by JLCs when formulating proposals for the EROs. It also provides that EROs and REAs in future will be given legal effect by ministerial order and that the perceived gap in the scope for parliamentary supervision will be filled by providing for Oireachtas scrutiny of these instruments.

I welcome the recent co-operation within JLCs which has facilitated reform, for example, the agreement reached on the adjustment of the Sunday premium rate, from double time to time and a third, that has already taken effect in hotels and catering establishments in recent times. This is a very positive and realistic approach. The Bill changes the definition of a worker to allow the offices of the VECs to access the dispute settling agencies - other than teachers. It provides for improved procedures to be followed when formulating proposals for EROs.

Unlike my rural colleague, Deputy White, I admire the work of NERA and I welcome its decentralisation to the south-east. However, I have many issues with its behaviour in the current economic climate. All workers must be protected, whether they are vulnerable or otherwise, but we cannot crucify employers, and that is happening in certain cases. I have had a meeting with Mr. Ger Deering and his senior officials and none of them was ever self-employed. I would suggest that all such officials, especially those engaged in visiting businesses and companies, should have some understanding of the other side of the story. It is not all one way traffic. They come with their high-powered cars and they are intimidating to businesses, small enterprises especially, arriving in the dead of night in some cases, to restaurants looking for the books when people are busy. These officials will have to be reined in and I believe NERA's entire raison d'être must be questioned and changed.

I would seek to make it relevant to today's economic realities. While we must protect workers' rights we must also try to protect the rights of the self-employed, the business people who are the shapers and movers trying to stimulate the economy. If anything is to lead us out of the present morass, they will, but not while they have all these shackles on their backs. NERA is one shackle too much. I have spoken to the Minister of State about this on numerous occasions. I am not criticising any individuals in NERA but rather its whole policy in the present economic climate. I should prefer to see it as an employment-support agency, helping business, and showing better balance. Its officials come in, literally touting for business. I asked Mr. Deering whether they give their business cards to every employee and he said they did, where possible. I believe that is touting for business and asking for trouble. It is tantamount to politicians going around interfering in different businesses, offering their cards and inviting employees to give them a call if the boss is not treating them right.

The fundamental structure of NERA has to change. I have been a small business employer since 1982 and I understand the situation from that perspective. There has to be balance and I honestly believe we are going to have to examine that whole set-up and the costs associated with it. I believe there are four or five regional offices, and that is something the economy cannot afford. It is flamboyant, with the headquarters in Carlow. This is a relatively new institution. I do not believe it is even underpinned statutorily, since legislation is still going through the Oireachtas in this regard. It has to be reined in. We cannot afford it, there are too many staff and they have too little to do because the businesses they are visiting are disappearing just like the snow in recent weeks. I have mentioned many of the reasons, but basically the costs of doing business are too high.

If we do not take action, the NERA will not have a role to play because there will be very few, if any, businesses to call to, especially small to medium-sized enterprises. We know the footfall has diminished in terms of the purchasing power of ordinary consumers. We accept that and we are trying to drive down costs, while NERA and other bodies such as those responsible for health and safety legislation are driving them upwards. The situation is totally over the top and I make no apologies for saying this. The approach is not measured and the people charged with administering those issues on behalf of NERA should have an understanding of how difficult it is to create even one job, and to grow that into ten or 50, especially in the present economic downturn. Even before the recession it was difficult to maintain profitability. Ultimately, there must be profits if businesses are to survive and reinvest in further and continued employment. They must have some understanding of what it is like to have sleepless nights about paying wages, rates, ESB bills, the Revenue and water charges. We have lost the run of ourselves and people cannot afford such costs. In addition, the banks are treating many of their customers outrageously over charges. Meanwhile, the Revenue Commissioners go to court as fast as lightning and pass the matter on to sheriffs. I have likened the behaviour of these people to the activities of the Black and Tans in the past. A recent television programme exposed the carefree and flamboyant attitude of a sheriff, asking whether there was anything worth taking in a house. It is outrageous. We are giving these powers too easily and there is too much money, commission and perks involved for these people. The legislation is outdated and must be changed. We must examine the matter holistically and treat our workers properly if we are to get back to a viable position of economic growth. I accept that we have come a long way in that respect, but there will always be cases of abuse concerning workers, which is unacceptable. We must also have balance, however, in supporting employers and other business drivers.

I commend the Bill to the House.

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