Mick Wallace (Wexford, Independent)

This Bill can be approached from a number of perspectives. The fact that I employ more than 50 people in the catering industry perhaps allows me to speak about it from a particular perspective. The legislation is geared towards giving employers a better deal and reducing protections for workers by creating greater flexibility. At yesterday's meeting, however, the troika said on a couple of occasions that the Irish labour market was more flexible than the norm in Europe. A number of speakers referred to competitiveness which, of course, is important.

As I do not want to be described as a hypocrite, I admit that it can be difficult for restaurants to pay a serious additional amount for Sunday work. Sunday is not the best day of the week for restaurants. If restaurants had to pay much over the odds on Sundays many of them would find it difficult to open that day. I also accept that people in the catering industry work unsociable hours not only on Sundays, which is not the only family time, but also at night time when the majority of workers are at home with their families. They work unsociable hours every day of the week. Many restaurants open for lunch but more money comes in at night-time than during the day.

I do not accept the notion that €8.65 per hour is a high wage. We often compare ourselves to Europe but if I was working in the catering industry on minimum wage I would prefer to work in Italy for €6 than earn €9 in Ireland given the huge difference in the cost of living. This is an expensive country in which to live and anybody would find it challenging to survive on €8.65 per hour.

Earlier today I calculated the costs incurred by my wine bars and restaurants. As a rule one tries to keep labour costs at 30%. Some people reach 25% but others have to deal with 35%. However, other factors are having a more dramatic impact on restaurant costs. Energy was never cheap but prices have increased by 15% in the past 12 months. Raw materials like vegetables and, especially, meat are additional expenses. Beef prices have increased by 50%, which is good for the farmers but not as good for those who must purchase it. I do not begrudge farmers but these costs present additional difficulties to businesses. One small restaurant I own pays commercial water rates of €3,000 per year, a service charge of €2,500 and commercial rates of €5,400. Rates increased by 5% in 2008 and 2009, although they have remained static since then. They are draconian and out of proportion to the reality that businesses face. One can negotiate rent but one cannot negotiate rates. It is a pity the Government has not been able to act on them because they make a huge difference to a significant number of businesses. There was a VAT change last summer and I can tell the Minister of State it was a huge boost to us in the industry. It does make a big difference. Whether these measures will actually create jobs is a different matter. The VAT measures helped to bring some stability to an industry that was finding life very difficult, but I do not think it actually created jobs. I do not think we will get more jobs out of this until the people coming in the door have more money in their pockets. The people who are most inclined to spend are generally those on lower to middle incomes, and they are the people who are suffering most in the present climate. There is a dramatic change in how much money they spend when they do come in. In one particular restaurant, the average spend has fallen from €30 per head to €17. That is hard to credit in a three-year period, and it makes a massive difference. Overheads do not change dramatically but there is a big difference in turnover. It is a difficult industry. If the Government were to raise the minimum wage to €10 per hour tomorrow, I would not object to it, because asking someone to live on €8.65 per hour in this country is unfair.

To speak more directly about the Bill, on the issue of compliance, there is probably a need for tighter regulation of how things are done. I was shocked, looking at the NERA inspection report, to see the breakdown of NERA's provisional inspection figures for the period January to June 2011. For example, in the catering industry, of the units inspected, only 26% were compliant. This is a bit frightening. Any restaurant that is trying to do things the way they should be done will find it hard to compete with someone who does not follow the rules. There should be a much better structure to ensure compliance.

How will it all work out with the lessening of the JLCs? I do have a fear that the rights of workers will be undermined by this Bill. Maybe I am wrong; maybe the Government can safeguard the rights of workers. To be honest, I am not 100% certain how everything will work out, and I will not pretend I have read the whole Bill, but I ask the Government to ensure, given the climate we are living in and the effect austerity is having on those who are least well off in our society, that these people are not being taken advantage of. Some employers will treat them as they should be treated, but not all will. The Government has a responsibility to ensure they do.

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