Dáil debates

Wednesday, 6 May 2020

European Council Meeting: Statements

 

1:25 pm

Photo of Mick BarryMick Barry (Cork North Central, Solidarity) | Oireachtas source

Last week, the International Labour Organization stated that 50% of the global workforce are in immediate danger of having their living standards destroyed by the coronavirus. "Destroyed" was its word, not mine. In some ways, that statement is only half correct because to be fully correct, it would state that those people's living standards will be destroyed by the coronavirus in the framework of market economics.

Ryanair is talking about making 3,000 redundancies, 20% wage cuts and closing bases throughout Europe. The company says that it cannot afford the cost of the coronavirus crisis to it, effectively in the region of €300 million. Ryanair made profits of €1 billion last year alone. It could absorb the hit it is taking but it is choosing not to do so and is placing the burden of the crisis on the backs of the people who work for it.

The European economy is facing a contraction of between 7% and 20%. Some 60 million jobs are likely to be affected and unemployment may double. For example, Spain lost 1 million jobs in three weeks. Clearly, without massive intervention on the part of states in order to save jobs, we face an unemployment disaster. There have been examples of state intervention in recent weeks. In France, a €9 billion package for Air France and KLM was announced. Germany announced a €9 billion package for Lufthansa.

I raise an issue about the retail industry in this State. Workers from Debenhams were protesting outside the Dáil earlier today in a disciplined and socially-distanced manner. Standing behind them are hundreds of thousands of retail workers whose jobs are on the line. That is not an exaggeration. Retail Ireland estimates that 110,000 jobs are at stake. Debenhams sets the benchmark; it is a test case. What are the parties that are negotiating a programme for Government going to do about it? There are 2,000 jobs involved. Debenhams has a profitable online business and at least four of its shops, more than one third of the outlets it has in the State, are clearly profitable. There is the possibility of rent cuts from landlords. I make the following point to the parties that are negotiating a programme for Government. It will cost the State more to let those jobs to go by the board, in terms of what is lost in tax revenues and paid out in social welfare payments, than it would to intervene and save them. Is the Taoiseach going to stand idly by while a profitable Debenhams store on his doorstep in Blanchardstown is allowed to close? Is the leader of Fianna Fáil going to stand idly by and watch a profitable Debenhams store close in the main street of his city, Cork, and allow another profitable Debenhams shop close within the heart of his constituency at Mahon Point shopping centre?

This is not a matter of providing State aid to Debenhams because the company has walked away. Instead, it is a case of a State takeover. People might ask questions about that and call it crazy talk. However, in a post-Covid-19 world, many things are going to be done that were not done in the past. This could be done. The company had ideas for diversification involving coffee shops, possibly wine bars, hairdressing services and so on, although they will not now be implemented.

Innovative policies to diversify could be implemented under State ownership. There could be a board in the company to which the Government could appoint representatives, people with economic and business experience etc., but the majority should not be civil servants. The majority at the heart of the management of such a company could be and should be the workers themselves. I refer to people who have worked in the company for ten, 15, 20 or more than 25 years, going back to the Roches Stores days. They know what the customers like and do not like. They have a strong idea of what would work and what would not work. They should be put at the heart of the management of the company and it should be run under the control and management of the workers.

The Taoiseach will be discussing the question of a jobs package as part of the programme for Government. That must examine and focus on the question of jobs in retail, where we are facing a jobs massacre. The test case for Deputy Martin, the Taoiseach, Deputy Varadkar, and Deputy Ryan is the Debenhams case. They have got to focus on that. What are they going to do on it now?

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