Áine Collins (Cork North West, Fine Gael)

We all agree this is a very important issue on which a balance needs to be found. It is vital that the Government reforms the present system in order that businesses that are struggling will be able to hold on to existing jobs, create new jobs and encourage others to set up business. The downturn in the economy has had a profound effect on the labour market, with areas such as retail, accommodation, food and construction being among those hardest hit. For example, there has been a 60% loss of employment in construction and a 15% to 20% loss in the wholesale and retail sectors. Hotels and catering have seen a 20% loss in employment alone in the past three years. While demand in these sectors is clearly a key factor, labour costs represent a high proportion of total costs. Some 39% of restaurants no longer open on Sundays owing to labour costs.

In the present environment it is vital to ensure that these structures are flexible and adaptable to changing circumstances and that they reflect the realities of our present day economy. The recently published live register figures make it clear that the time for business as usual in any sector of the economy is long past. The challenge facing the Government is indeed enormous. We were elected to change current practices and it is clear from the Duffy-Walsh report that reform is needed. The policies pursued over the past 14 years by our predecessors in government have got us into the mess we are now experiencing. The previous Government had ample time to pass such a Bill through the Oireachtas, but as usual it procrastinated. It will take several years of good government and good policies to put things back on track.

The Bill is largely cut and pasted from the Industrial Relations (Amendment) Bill 2009 which was introduced by the previous Government in August 2009 in response to the commencement of the Quick Service Food Alliance case in December 2008. However, despite being welcomed by all sides, the Bill was never progressed by that Government beyond Second Stage in the Dáil and it lapsed with the end of the previous Dáil in early 2011. With 446,800 people on the live register at present, we must realise that action is needed urgently which is why the Government will address the issue early in September. We need to provide people with the opportunity to get back to work, and job creation must be on the top of all our agendas. To that end, I welcome this.

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