John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank Deputy Tóibín for his input to the Bill. This is a technical tranche of legislation, the purpose of which is to implement the 2012 Government decision to dissolve the county enterprise boards, transfer their functions, assets and liabilities to Enterprise Ireland and to allow for the transfer of the existing staff.

I note Deputy Tóibín's concern in respect of State-funded companies and compliance with labour laws. I agree that companies should adhere to all national law, including employment rights. It is clearly our intention that assurances of compliance with labour law by an employer will be a requirement prior to the issuing of grants. However, we also do not wish to create excessively onerous compliance statements or impose a heavy administrative burden on new and existing small or micro-enterprises.

I am in total agreement that measures can put in place to safeguard against flouting labour law. Therefore, as the operational procedures for the new local enterprise offices are currently being reviewed, the inclusion of compliance with labour law as a requirement for payment of a grant will be included in the procedure. Currently, all grant recipients are obliged to comply with other national laws, for example, taxation.

One role of the local enterprise offices is as a first-stop-shop to ensure that micro-enterprises and small businesses in particular are aware of their obligations under various statutes. The LEOs will promote an expectation of compliance with all legal obligations.

Reference was made to the enforcement of labour laws. We already have legislation in force in respect of conditions of employment with associated enforcement mechanisms in respect of the breaches of the law. I do not believe that we should charge another body, whose job is to support the growth of enterprise, with a policing role on employers who renege on their responsibilities. The provisions for enforcement are included in the relevant employment rights legislation and are enforced by the relevant bodies, for example, the National Employment Rights Authority. For this reason, I cannot accept the amendment as put down.

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