Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 5: To ask the Minister for Enterprise, Trade and Employment the decision he has made regarding the rights of citizens from Bulgaria and Romania to freely travel here to work upon succession of those countries to the European Union; and if he will make a statement on the matter. [32162/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The European Commission report of 26 September 2006 stated that Bulgaria and Romania will be in a position to join the EU on 1 January 2007, as long as they address a number of outstanding issues. The European Council of Foreign Ministers will decide at its meeting on 16 October whether accession should go ahead on 1 January 2007. The treaties of accession provide for the following transitional arrangements. During phase 1, in 2007-08, member states may liberalise access to their labour markets or continue to require nationals of Bulgaria and Romania to hold employment permits. Member states must notify the Commission before the end of 2008 of whether they plan to continue the restrictions for a further three years during phase 2. During phase 3, in 2012-13, the transitional measures which restrict access should, in principle, cease to be applied. However, in the case of a serious disturbance to its labour market or a threat thereof, a member state may continue to apply restrictions for a further two years.

The Government will make a decision on access to the Irish labour market of Bulgarian and Romanian nationals before the accession date, following consultations with the social partners. Contacts with the United Kingdom authorities have continued in recent weeks at prime ministerial and official levels. The Employment Permits Act 2006, which was signed by the President in June, provides the legal basis for three options. Nationals of Bulgaria and Romania who wish to participate in the Irish labour market during the first two years of transition will continue to require work permits with the current requirement for a labour market test to establish that the positions cannot be filled from within the European economic area or will be granted work permits on foot of a job offer without a labour market test, or will be allowed to participate without any requirement for a work permit.

Denis Naughten (Longford-Roscommon, Fine Gael)
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I thank the Minister for his reply. Fine Gael believes that the Irish labour market should not be opened to Bulgarian and Romanian nationals on 1 January next. In advance of the accession of the two countries, the Government should announce details of the transitional arrangements to be put in place for Bulgarian and Romanian citizens and restrict their access to the Irish labour market. Will the Minister elaborate on the discussions he has had with the UK authorities? Has he consulted any other EU member states? What impact will their decisions have on the decision that will be taken here?

Micheál Martin (Cork South Central, Fianna Fail)
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We are examining this issue in the context of what has happened in recent years. That Ireland has, since May 2004, experienced the most rapid inward migration of any of the 25 EU member states will inform our deliberations on the matter. We undertook in the social partnership agreement, Towards 2016, to consult the social partners. The Secretary General of the Department of Enterprise, Trade and Employment has written to ICTU and IBEC in fulfilment of that commitment and he is awaiting a response from those organisations. We have been in contact at official level with the UK authorities, who are actively considering this issue. We are assessing a number of issues. We are taking a conservative approach not only to our assessment of Ireland's current labour market situation but also to our analysis of the key challenge of integration. We regard social integration as a fundamental priority objective. In light of the significant inward migration we have experienced, all sectors of society, including all Departments and State agencies, are charged with ensuring that they provide for the fullest and most effective degree of integration. Training and education are related issues which are critical to integration.

It is estimated that approximately 260,000 personal public service numbers have been issued since May 2004. It is estimated that approximately 177,000 people to whom those numbers were issued have taken up employment. Some of the personal public service numbers were issued to students, people on short-term and seasonal contracts and people with more established forms of employment. The Central Statistics Office estimates that approximately 80,000 nationals or citizens of accession states are currently in employment in Ireland.

Ruairi Quinn (Dublin South East, Labour)
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Will the Minister repeat that?

Micheál Martin (Cork South Central, Fianna Fail)
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Some 80,000 people from the accession states are currently working here, according to CSO estimates. While the capture of data relating to people coming here is quite good, as a result of the issuing of PPS numbers, some work remains to be done to create a more accurate database of information about people on the way out. Ireland is now the fourth most favoured destination for Polish citizens, after the United States, the UK and Germany. It is obvious that there are high levels of unemployment in Poland.

Some 1,840 work permits were issued to Romanian nationals in 2005. Just 250 of those work permits were new permits. Some 570 work permits were issued to Bulgarian nationals in 2005, of which 50 were new permits. The unemployment rate in Romania is 17% and the unemployment rate in Bulgaria is 11%.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister is probably aware of the Small Firms Association's recent statement, with which Fine Gael is in agreement. The association argued that we need to consider the establishment of a State-subsidised English language instruction course to assist people who have come to this country to work but are not accustomed to the English language. Difficulties in understanding English seem to represent a significant barrier to employment in this country at present. We are all aware, having heard advertisements on local radio, for example, that English is now a critical requirement. Many foreign nationals are availing of VEC English language classes which are normally offered to people with literacy difficulties. Does the Government plan to put in place a scheme, part-funded by employers and the State, whereby English language courses would be offered to people coming to this country to help them to develop basic communication skills?

Micheál Martin (Cork South Central, Fianna Fail)
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I was somewhat surprised by the recent development referred to by the Deputy. We need to be careful about language. The number of people in employment increased by 88,000 in 2005, which does not suggest that substantial barriers are preventing people from getting employment.

Denis Naughten (Longford-Roscommon, Fine Gael)
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A lack of English is a significant barrier to social integration.

Micheál Martin (Cork South Central, Fianna Fail)
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I am talking about barriers to employment. There was a need to facilitate integration and English language training is part of that. We fund a variety of employer and industry-led initiatives through the in-company training programme, the Skillsnet programme and the Accel programme. The various sectors may make proposals relating to, perhaps, the Skillsnet issue.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Have they made any proposals?

Micheál Martin (Cork South Central, Fianna Fail)
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FÁS is actively providing training for foreign workers in this country. There are obligations on the employers to facilitate the proper integration of employees and many are fulfilling them. In terms of small and medium enterprises, SMEs, there are issues relating to economies of scale and capacity. A variety of schemes is available to companies if they wish to work with us. We will be responsive, as will FÁS.