Richard Bruton (Dublin North Central, Fine Gael)

It is important that we recognise the value in protecting these rules. We are not going down the road of abandoning them, as has been called for by employer organisations and others. These rules provide orderly regulation of conditions for people who would otherwise be poorly organised and would not receive their rights. Where legislation governs sectors, though, it is a different matter. We should recognise the importance of the collective bargaining that has underpinned the REAs. Throughout Europe, there are systems to protect collective bargaining and negotiated terms.

However, the Duffy Walsh report has indicated that our systems need to be more flexible to be able to respond to dramatically changed conditions, predominantly in the construction sector, which is regulated by these rules. Costs in the construction sector have decreased by 30% or 40% and people cannot get contracts. Due to changed demand conditions, rates that could be paid previously are no longer possible. If Irish companies are to win business, they must be able to respond. Many people claim that contractors are coming from the North to take business for which the former cannot contract. As we address this sector, we must be aware of different levels of competitiveness North and South.

It is important that we provide certainty by ensuring agreements remain in place and the playing pitch stays level. Where maverick employers abuse the system, we support the need for proper enforcement. The National Employment Rights Authority, NERA, which is within my Department's aegis, is designed to ensure fair terms and conditions are being applied. NERA was set up in 2007 to foster a culture of compliance and to encourage people to respect these rules. We support the idea of maintaining a system that protects people who are not well organised or who have collectively negotiated REAs so that maverick employers do not break away. Enforcement and encouraging compliance are essential, but this does not mean that one should blind oneself to the need to make these systems responsive. At the heart of the Duffy Walsh analysis is that systems need to be made responsive to the changed conditions we face.

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