Martin Heydon (Kildare South, Fine Gael)

I thank the Ceann Comhairle for the opportunity to speak on this extremely important matter. I welcome the presence of the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton.

I am troubled and deeply concerned that the EU agency workers directive is due to enter into Irish law on Monday, 5 December. I am disappointed by the lack of debate in the House and media on the potential impact of the directive. As the Minister will be aware, the directive gives all agency workers the same benefits as direct employees from the first day of employment. Businesses do not have much information on what implementation will mean for them. How will the term "benefits" be defined? Do benefits include sick pay and holiday pay? The lack of clarity on such matters will have a considerable impact on businesses.

Before the directive was implemented in Britain and Northern Ireland on 1 October a 12 week qualifying period or derogation was agreed between employers and trade unions. A consultation period of six months also preceded implementation in the UK and the legislation was amended during this period. An extension to the 5 December deadline is required to provide sufficient time of the detail of the legislation to be worked out. We also need a derogation, which the European Union will provide if it is agreed by the social partners. I understand that while some discussions have taken place among the social partners, the trade unions are reluctant to agree a derogation. It is crucial that we obtain a derogation if we are to secure employment and investment.

Agency staff form a key part of multinationals' employment model. It is estimated that approximately 35,000 agency workers are employed in this country. Their use provides a degree of flexibility for struggling businesses which cannot commit to recruiting full-time employees or provide seasonal work. In County Kildare, for instance, we have a successful indigenous food company whose work is extremely seasonal. Although it has little work available in April, May and June, in recent years it has secured large contracts in July and August and hired 180 temporary agency staff to fulfil them. The company provides good employment while the agency looks after staff well and pays a rate that is above the minimum wage. This degree of employment flexibility suits many staff. The head of the company in question informed me the directive will cost him money and result in the company losing export contracts. The potential impact of the directive is extremely serious. The State is one of the largest employers of agency staff. The potential impact of the directive on the Health Service Executive is staggering, with the estimated cost to the HSE, if the directive is implemented in its current form, in excess of €30 million.

What progress has been made in discussions between the social partners on achieving a derogation? I urge the Minister to do everything in his power to ensure agreement is reached on a derogation before the legislation is implemented. We must seek an extension of the 5 December deadline to give us more time.

While no one in the House is in favour of the exploitation of workers, the simple question is whether the directive will enhance or disimprove Irish employment figures. On a day when we learned the unemployment rate has increased, I note that no one, including trade union representatives, has argued that the directive will improve job numbers or competitiveness. I look forward to the Minister's response and urge him to engage with the trade unions and apply the greatest possible pressure to agree a derogation.

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