Paudie Coffey (Waterford, Fine Gael)

This important debate gives us an opportunity to reflect on the employment needs of a modern society and economy. We have been well-served by existing legislation protecting workers and their conditions and terms. Legislation is already in place to deal with issues such as workers' leave, work environments and health and safety, pay and work time, safety obligations and access to facilities and canteens. The Protection of Employees (Temporary Agency Work) Bill 2011 will introduce equality for temporary agency workers who work along with permanent colleagues and eliminate exploitation. We often criticise the EU for the many directives with which we have to comply. It must be acknowledged, however, the EU has led the way, setting high standards in areas such as health and safety and workers' rights which this country has followed. This legislation in the best interests of workers is an example of that.

I am no cheerleader for the unions but I acknowledge their work over the years on workers' rights, terms and employment conditions. These are important areas in a competitive economy. One need only look at the negative publicity surrounding the terrible working conditions in China's factories that produce Apple computers and iPhones. We will never experience that in Ireland because of legislation such as this.

The role of the Government must also be acknowledged, as well as its commitment to improving pay for low-paid workers. Already in the short time served by the Government, it has increased the minimum wage and the recent budget raised the universal social charge threshold from €4,000 to €10,000 which will have a positive and direct impact on over 330,000 low-paid workers.

I have, however, some concerns, about this legislation, particularly that some social partners have not taken advantage of the derogations provided by it. A modern economy must have competitiveness and flexibility in the workplace so as to win foreign direct investment, which is essential to our economic recovery. November 2011 saw the highest figure for exports ever, €8.2 billion, an increase of 9% on the same period in 2010. Imports at the same time amounted to €3.7 billion resulting in a trade surplus of €4.5 billion. This shows the importance of a small economy like Ireland's trading with her international partners. In that period exports in organic chemicals increased by 11%, dairy products by 28% and medical and pharmaceutical products by 8%. This is serious growth in a small economy that must not be sniffed at.

Many companies in these sectors need to have the flexibility to respond to seasonal and peak demands by using temporary agency workers. They budget for this in their business models. Their concern with some of the entitlements this Bill provides for temporary agency workers is that it may force them not to take on the same number of temporary workers in future. Instead, existing permanent workers may just do overtime which has a direct impact on job creation.

The social partners in the UK managed to agree on a derogation whereby temporary workers would have to have 12 weeks' continuous work before getting the same full-time pay as their permanent colleagues. Those same unions are represented in this country. I urge them and the employers' agencies to agree on a similar derogation as it will lead to cost effectiveness and assist in attracting further foreign direct investment.

I acknowledge the Minister of State's work with the universities and colleges in research and innovation. It is an area with great potential which will assist innovation and expand new revenue streams.

Over 200,000 small and medium-sized enterprises employ over 700,000 employees. It is a sector that cannot and will not be ignored by the Government. We must support them in every way possible.

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