Tony McLoughlin (Sligo-North Leitrim, Fine Gael)

I welcome the opportunity to speak on this Bill and thank the Minister for his work on the legislation. The Minister and Minister of State have had a difficult job to balance the arguments on both sides, but the Bill achieves a compromise. I welcome a number of measures in the Bill, particularly in the area of Sunday working which has been a bone of contention both for employers and employees. Many employers complained that such rates were making Ireland uncompetitive, especially in the tourism sector, as countries like Spain, Germany and the United Kingdom do not pay premium rates on Sundays.

The Bill proposes that joint labour committees will no longer set Sunday premium rates or any other conditions of employment covered by universal standards provided for in existing legislation. I welcome the fact the position of Sunday working will still be recognised, mainly through options set out in the Organisation of Working Time Act. These include the provision of time off in lieu. However, a new statutory code of practice on Sunday working is to be drawn up by the Labour Relations Commission, which will provide guidance for workers and employers on compliance with the Organisation of Working Time Act.

Like many Deputies, I have been lobbied by organisations like the Restaurants Association of Ireland on the issue of Sunday working. While we must have regard to our competitive tourism and service sectors, it is only fair to protect those working in those sectors, most of whom are on the minimum wage. It is only right that due recognition be given to people who have to work on the day most others have off. However, we must strike a balance and exorbitant multiples of pay on Sunday, as proposed by JLCs in the past, have damaged the prospects of creating more jobs in restaurants and in the service sectors. The Minister has achieved the desired balance in the Bill's proposals. I acknowledge the comments by Chambers Ireland, which welcomed the move in saying that the new measures would result in a fairer and more competitive system.

There is frustration among many employers, some of whom are struggling to make a profit. These are pitched against our neighbours in the UK and especially those in Northern Ireland, where the wage levels at the lower end of the scale are substantially less than in Ireland. It is worth noting that we have the second highest national minimum wage in the EU and all employees are protected by over 40 items of the legislation. Many business people in my constituency of Sligo Leitrim North, a constituency that straddles the Border, struggle to compete with businesses supplying similar services and goods in Northern Ireland. Only for the currency difference and the weak euro, it would be much worse.

It may be said that it is a race to the bottom when it comes to wage restraint but there is a competitive issue to be considered and we must keep our eye on the ball. Otherwise, more jobs will be lost, especially in the Border region and in our tourism industry. The jobs initiative by this Government, reducing the VAT rate at the lower level, resulted in many services associated with the food, tourism and service sector being reduced. Increased tourist numbers over the past number of months shows me that this move worked and will secure more employment in the sector. In tandem with this, it is vital we maintain wage costs so that we can continue to provide value for money in these sectors.

While the Government has been criticised by the trade unions for going further than recommended by the Duffy Walsh review, the EU Commission supports this approach. The finding in the High Court that some sectoral wage setting arrangements were unconstitutional redoubles the urgency of reform in this area. I recently met a restaurant owner who offered the job to a person in receipt of a social protection payments. After taking a week to think about, the person told the restaurant owner that the difference in earnings compared to welfare payments was €50 and the loss of a number of benefits. Needless to say, the job was turned down. We need to strike a balance so that remuneration difference between working and not working is less than €100.

I welcome two further aspect of this proposal, such as the need to take into account international wage rates when agreeing terms and the fact that, for employers, the burden of compliance and record-keeping requirements in these sectors will be reduced. I commend the Bill to the House.

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