Dáil debates

Tuesday, 27 May 2014

Employment Permits (Amendment) Bill 2014: Second Stage

 

7:15 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent) | Oireachtas source

I am sharing 15 minutes of my time with my colleague Deputy Mattie McGrath.

I welcome the opportunity of speaking on this new legislation, the Employment Permits (Amendment) Bill 2014. I welcome this debate, as exploitation of workers should never be tolerated in any country or humane society. We need to update all legislation and make these Bills relevant to people's daily lives and their particular jobs.

This is a relevant issue, particularly in view of what we have seen in recent days with regard to the rise of the extreme right across the European Union. All of us must be vigilant, as racism and exploitation can never be tolerated. As Members of the Oireachtas we all have a duty to lead on this important issue. We have seen what sectarianism has done in the North, and all of us have a statutory duty to build an inclusive and respectful workplace. This legislation is part of that wider debate, and I will put forward my arguments for that later.

The Employment Permits (Amendment) Bill seeks to update the existing legislation, including permit types, to take account of recent case law. Issues identified include ensuring flexibility within the system and preventing the exploitation of workers who do not have an employment permit. That is at the core of the legislation. We must examine closely the issue of exploitation of workers and staff. Specifically, the legislation updates and expands the types of permit available. It also provides a system of compensation up to the minimum wage level for employees who are working illegally but not paid properly by their employer. That is what is at the heart of this Bill.

It is important also when dealing with this legislation and the broader debate that we get the facts and the information right and examine what is really happening here and in the broader economy. We must face up to the reality that we need highly skilled people to come to this State and assist us in improving our skills. It is important that we state that and not run away from the issue or hide behind other arguments.

The number of permits issued has decreased annually since the peak in 2003, when 47,551 were issued. In 2013, 3,863 permits were issued. The top nationality of people granted permits was India, the figure for which was 1,410, followed by the United States, at 583, the Philippines, at 211, and China, at 208. Google was the top company sponsoring permits, with 137, followed by Tata Consultancy Services and the Health Service Executive, HSE, the figure for which, interestingly, was 94. These are the people we are talking about in the legislation.

There is an economic rationale for this measure, which is important when we are discussing growth in this country. The Minister, Deputy Bruton, constantly talks about jobs and getting directly involved in job creation, but we must have an economic rationale for the employment permits system, because we also learn from that. There is a hugely positive side to employment permits about which we never hear in this House or in the broader media. The first and most significant channel is the labour market. The immigration of highly skilled workers has the potential to substantially improve cost competitiveness and expand GNP more than the increase in population. Second, where there are economies of scale in production, increased employment through migration can boost GNP per head. Third, in addition to their impact on costs, there is potential for immigrants to enhance GNP per head through creativity and expertise. That is the real economic world. There are a variety of other possible influences, including immigration as a source of entrepreneurship and a stimulus to new trade connections. That is something we must develop. We started it with regard to China, but we have to broaden it out to include the Middle East and the Arab countries also. We do not hear that reality mentioned, particularly the economic side. When highly skilled and motivated people come to our country they assist us in upskilling and add to the productivity and commercial activity of this State. We know that from our history. When our families emigrated to America, Australia or England they were very poor, but when they got to those countries they worked very hard, educated their children and had a major impact on the economies of those countries. We can see the fruits of that when we meet our cousins, second cousins and other relations who visit us from different countries.

The negative comments, including the "taking our jobs" comment we hear regularly, should be challenged and dealt with. I have put forward the economic arguments which stand up to any objective analysis. I do not accept much of the negative spin.

There is also an element of racism involved that needs to be challenged. As I stated earlier, this should not be tolerated.

In discussing the employment permits system in Ireland we should focus on the facts rather than the myths. Those who do not require an employment permit include Irish citizens, European Union citizens, EEA citizens and Swiss citizens. Citizens of all other countries require an employment permit, except full-time students, who are limited to 20 hours of work per week per term, or persons who have been granted permission to remain in Ireland exempting them from requiring a permit - namely, spouses or partners of Irish citizens and refugees. There is also a working holiday authorisation, WHA, to allow young people from certain countries to fund an extended holiday in Ireland through temporary work. To avail of this, the young person needs to apply for a WHA from their nearest Irish embassy or consulate or relevant organisation. This system is regulated by the Department of Foreign Affairs and Trade, as opposed to the Department of Jobs, Enterprise and Innovation. There are four types of permit, including work permits, green cards, spouse or dependant work permits, and intra-company transfer permits.

In regard to skilled workers, there is regular commentary regarding the need for ICT professionals, health-associated professionals, professional engineers and technologists, researchers and natural scientists and business and financial professionals and associate professionals in our modern society. It is important in terms of the identified deficit of these skills in Ireland that such professionals are utilised in upskilling our own people. We need to get our act together in this regard. The educational system also needs to get its act together and deal with the deficit. We must ensure that our people are constantly learning and upskilling.

The spouse or dependant employment permit allows family members of green card work permit holders to also work in Ireland, which I welcome. This type of permit is available to spouses, recognised partners and eligible dependant children. It does not attract the same requirements as a work permit or green card in that a spouse or dependant can apply for a job in any sector, work for a minimum of ten hours per week and earn less than €30,000 per annum. The person is, however, expected to remain with one employer for the first year. Also, there is no application fee in respect of this permit. Where a person is married to an Irish or EU citizen, he or she does not apply for a spouse or dependant employment permit; rather, he or she applies in the first instance to the Irish Naturalisation and Immigration Service, INIS, for residency permission, which usually allows for employment.

It is important to refer to the strong economic arguments for work permits. The view that mass immigration is undesirable and is more a cost than a benefit is totally wrong. Immigration should be viewed as an opportunity to be embraced rather than a cost to be minimised. Non-Irish workers have played an important role in the evolution of the Irish economy and continue to make essential contributions to the labour market, particularly in filling skilled vacancies. Our liberal policy towards immigration in Ireland during the boom years primarily reflected economic necessity. There is significant potential for growth in ethnic entrepreneurship, provided the right environment is created and support offered. This is often forgotten. We need to develop ethnic entrepreneurship because it is these people who can assist us in our hour of need. There is little evidence to date to show that immigrants would be more likely than Irish nationals to avail of jobseeker's benefits. These are all issues that need to be highlighted in this debate.

Not all jobs can be filled from domestic sources. The permit system should adequately facilitate recruitment of non-EU workers where necessary. However, we need to also constantly upskill our workforce. The top ten companies sponsoring employment permits include Google Ireland Limited, with 137 permits; Tata Consultancy Services Limited, with 154; the HSE, with 94; IBM Ireland Limited, with 84; Ernst & Young, with 79; Dell Technology & Solutions Limited, with 78; and Intel Ireland Limited, with 69; and various other companies sponsoring 57 or 58 permits. It is important in the context of discussing and updating our work permits system that we seek to protect and develop our domestic labour market. Cheap labour in any market should never be an option. Concerns have been expressed about internships and the exploitation of young people. We have many talented young people in this country, some of whom are unemployed. I have been told on many occasions by young people that they would work for nothing to get into the system. We need to ensure that those at whom this legislation is targeted have sustainable jobs which will result in their being able to contribute to the tax system and, thus, through spending, the development of the wider economy.

The Minister needs to keep his eye on the ball. Upskilling is important. It is the name of the game. Let us hope this Bill will make a major contribution to the overall reforms currently under way in the employment permits area. This Bill codifies and clarifies the law in this area so as to make the system more transparent and the obligations of businesses and other stakeholders clearer. It also makes the system more flexible and responsive to changing economic circumstances so that our employment permits system can respond quickly and allow our economy to benefit from emerging opportunities. I want to see this country develop. This is not only what I want but what needs to happen. Let us ensure that in addressing this issue of employment permits we address the needs of those who come to this country and assist us in developing our economy. We will only emerge from the current crisis by developing our economy and looking to new ideas in terms of job creation. Many of the people about whom we are speaking have the new ideas and skills we require and can teach them to us too. It is important that is acknowledged in this debate.

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