Dáil debates
Wednesday, 19 June 2024
Hospitality and Tourism Sector: Motion [Private Members]
10:40 am
Louise O'Reilly (Dublin Fingal, Sinn Fein) | Oireachtas source
I thank the Deputies who introduced the motion for debate. Businesses are struggling with the cost-of-doing-business crisis and workers are struggling with the cost-of-living crisis. Both need to be supported. Unfortunately, instead of helping both, the Government has sought to pit business against business and business against workers. It has been clear for some time that supports for business must be forthcoming. For nearly a year now, Sinn Féin has called on the Government to engage with industry to design a bespoke but time-limited support for the sectors most impacted by public policy interventions. However, businesses have been let down time and again. Supports are untargeted and ineffectual. That is evidenced by the litany of failed business support schemes launched by the Government.
Analysis from Deloitte Ireland reveals that corporate insolvencies reached the highest level in five years, after a 25% rise in 2023. Of the 663 insolvencies last year, hospitality and construction saw a 62% increase, showing that inflation is having a particularly potent impact on these sectors. This trend has continued, and insolvencies in the food and hospitality sector have more than doubled in the first three months of this year.
Sinn Féin is aware of the cost-of-business storm that has been brewing for SMEs. In addition, we are also cognisant that phased payment arrangements on warehoused tax liabilities have created an additional dynamic for businesses to navigate. All the while, the Government has consistently failed to appreciate the importance of the domestic, demand-driven service economy, which includes the food, beverage and hospitality sectors. This sector of the economy encompasses small businesses that cater to the needs of our communities, employing a significant proportion of the workforce in its process. I again call on the Government to engage with industry to design a bespoke but time-limited support for those sectors most impacted by public policy interventions.
It would be remiss of me not to call for a quid pro quo for workers. For years now, there has not been a joint labour committee, JLC, for the hospitality sector. There is a clear urgency to rectify the legislation governing the JLC system, which has enabled employers to veto the functioning of these committees, thereby preventing engagement, negotiation and progress. Experience of the JLC system proves that it works for employees, the reputation of employers and outcomes for the sector.
We must also point to the need for the tourism and hospitality sector to adhere to the employment laws of the State. This sector is the worst abuser of workers' rights in the economy. Beverage services have a 54% breach rate of employment law. Hotels had a 57% breach rate of employment law in 2023.
Food services had a 58% breach rate of employment law in 2023. On the one hand, this sector is looking for State support while, on the other, it opposes improving the conditions of workers and the abuse of workers’ rights. Any moves to provide State support for businesses must be made in tandem with an equivalent level of support and protection for workers and this must include the delivery of a right to organise and a right to collective bargaining. I understand there is a directive but there has been no sense of urgency coming from the Government in relation to collective bargaining, and all the while vulnerable workers are being left to wait. They do not have the protection of a trade union and they have to wait to get to the Workplace Relations Commission. The Minister knows these are the facts. The figures from the WRC do not lie.
We absolutely recognise the need to support the tourism and hospitality sector. We absolutely recognise the value of tourism and hospitality in every town, village and city in this State. We also have to recognise, however, that there is a need for workers to be facilitated with the right to collectively bargain. This has to be done. I do not sense any urgency coming from the Government and I would like to see that.
In the few moments remaining to me, I will refer to Dublin Airport, which is referenced in the motion. Some 38% of tourists who land in Dublin travel to the west. It is past time that a strategy was developed. The Government must develop a strategy to harness the potential of regional airports and use those to drive the economy right across Ireland and balanced regional development, which is needed. We need to see greater utilisation of all the transport infrastructure in the State. That must include Shannon Airport and all our regional airports. The overreliance on Dublin is not good for Dublin, tourism or the regions. We need to see a proper plan to harness balanced regional development.
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