Martin Heydon (Kildare South, Fine Gael)

I will share time with Deputy Phelan. I welcome the introduction of the Bill and the opportunity to speak on it today. I also welcome the clarity that the introduction of this Bill will now bring for many agency workers, employers and agencies as to how the equal treatment for agency workers is to apply. I am on record as having raised my concerns about this directive in the House under Topical Issues last November.

As we approached the implementation date of 5 December last year there was considerable uncertainty and confusion among employers and agencies as to how the directive would be implemented in Ireland and, crucially, whether a derogation would be negotiated between the social partners as happened in Britain and Northern Ireland. Unfortunately agreement was not subsequently reached on a derogation and I strongly believe that the unions should have agreed a minimum period of three months in order not to put us at a competitive disadvantage with our nearest neighbours, as is now the case.

The Department's regulatory impact analysis recommended the policy option that included a qualifying period. The unions' failure to agree this has led to many of the difficulties currently experienced by recruitment agencies and businesses. We expected these employers to have applied the terms of this legislation before they even knew its precise terms.

Is it possible to review the retrospective start date of 5 December? I ask this because I believe it will cause practical issues. From a financial point of view, it will create large pay bills for employers and agencies covering a period when there was no legislation in place. However, I believe it will also result in legal challenges which will place pressure on an already backlogged employment appeals system.

I am not sure if the provisions of this Bill have been applied in practice since 5 December, as many employers were expecting a derogation to be agreed and the late confirmation that there would not be such a derogation did not allow time for employers to amend their systems. That has only been happening since guidance was issued from the Department through the employer groups about how the equal terms should apply, and this has only been since 5 December. Indeed, this Bill was only published on 22 December, so it will be difficult to expect employers to adhere to the terms of a Bill from a date before its publication. While there will be difficulties for many agencies and employers, the potential impact on the HSE alone is very significant.

It has been reported that the estimated staffing costs of the HSE will rise by €33 million a year as a result of the implementation of the provisions of this directive. Through the use of parliamentary questions, I asked the Minister for Health about the cost of using agency nurses. The following is the information I received. In 2009, the Department spent in excess €48 million in 2009 on the cost of nursing, medical and allied health and social care, rising to in excess of €110 million in 2010. I expect that figure to increase again when we receive the information on the amount spent in 2011.

I understand the constraints on staff numbers that the Minister is under following the memorandum of understanding agreed by the last Government with the troika, but I believe we are now at a point where we must renegotiate our staffing levels in the health sector as part of that agreement. It is costing us more to hire agency nurses than full-time staff and this directive has widened that cost even further. On a practical level, there are more problems associated with the extensive use of agency nurses. For example, there is a far greater burden placed on the remaining full-time staff if agency staff make themselves unavailable during holiday periods such as Christmas and New Year's Eve, as happened recently. This leads to an extremely low morale among our health care professionals and this is not good for our health system. Agency staff represent a good short-term measure in the health sector, but not a good long-term policy, and I would like the Minister for Health to push for changes in this regard.

It is estimated that there are about 35,000 agency workers employed in Ireland. Their use provides a degree of flexibility for struggling businesses that cannot commit to full-time employees or who have seasonal work. I welcome the clarification this Bill provides on their position in the Irish workforce which recognises the huge contribution they have made to many industries, including the health system.

Apart from the equal pay and terms for agency workers which many people associate with this Bill, there are also other entitlements which are now confirmed for agency workers which are welcome. The confirmation that agency workers should now be informed of vacancies and other employment opportunities at their hirer company is a welcome addition. Many speakers last night also mentioned the access to shared canteen and crèche facilities where they are available. I would expect that in most cases, this shared access is already the case, but its confirmation is welcome.

I hope that employing agencies, hirer companies and agency workers can work together to implement the changes this EU directive will require, and I thank the Minister of State and his officials for their work on this Bill.

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