Dáil debates

Tuesday, 15 November 2011

Ceisteanna - Questions (Resumed)

Official Engagements

4:00 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 10: To ask the Taoiseach if he has met the social partners recently; the items that were discussed; the outcome of same; and if he will make a statement on the matter. [32725/11]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 11: To ask the Taoiseach if he will report on the process of social dialogue that he has commenced with the social partners. [34022/11]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 12: To ask the Taoiseach if he will report on recent meetings he has held with the social partners; and if he will make a statement on the matter. [34189/11]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 10 to 12, inclusive, together.

I have stated on several occasions since taking office that the Government values dialogue with key representatives of civil society. The Government recognises the contribution that social dialogue can make to maximising common understanding across all sectors of society as we respond to the many challenges facing the country.

In October, the Tánaiste and I stated our intention to meet representatives of lead organisations over the coming weeks and months. In this regard the Tánaiste and I met representatives of ICTU on 2 November and we met representatives of the IFA yesterday. I have also arranged to meet representatives of IBEC next week, and I plan to address the ICMSA annual general meeting on Saturday. These meetings are an opportunity for a discussion of broad economic issues and the challenges facing our country in the period ahead, as well as the specific decisions which we face in the context of the 2012 budgetary process.

We also highlighted our support for ongoing bilateral engagement with relevant Ministers on issues of mutual concern, as well as the value of the National Economic and Social Council as a forum for engagement with Government on economic, social and environmental issues. The Tánaiste and I plan to attend a plenary session of the council each year.

The Government's approach to social dialogue does not amount to a return to rigid social partnership structures of the past, but rather involves a more flexible, adaptable approach which can support change. My intention is that senior Ministers, including the Tánaiste and I, will continue to meet representatives of social partner organisations on a periodic basis to discuss matters of mutual concern.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I thank the Taoiseach for his response. I note the meetings that have taken place. The Croke Park agreement is another area in which the Government is claiming credit even though the Government parties originally bitterly opposed it. The act of the Minister, Deputy Howlin, as the great reformer is not fooling anybody. Does the Taoiseach agree that public servants have made a significant contribution to progress on the public finances and that this should be acknowledged more widely? Does he envisage additional contributions over and above the Croke Park agreement in the context of the forthcoming budget and the public finances?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Deputy is aware that the Croke Park agreement is an essential part of the troika and from that point of view the Government has made it clear that it wishes to honour the commitment given in the agreement. That is only possible if the agreement is implemented in full. I compliment those involved on the efforts in stretching the parameters of the agreement in order to bring about meeting the full conditions set out here. The report of the implementation body published on 15 June shows that solid and measurable progress has been made, which is welcome. It also points out that more urgency and ambition is needed in the period ahead. The Government accepts that assessment. I was pleased that the OECD included a positive assessment of the agreement in its economic survey of Ireland.

Obviously there is enormous pressure to cut expenditure significantly and to ensure that the public is leaner and more effective, and delivers services for the people in the best way possible. It is a case of achievements having been made, but clearly an intensified level of effort and engagement from all concerned, both public service management and unions will be needed in the coming months. The Minister for Public Expenditure and Reform has been in constant contact with the trade unions in respect of the Croke Park agreement. Further significant reductions in public expenditure and the number of public servants will need to be achieved in the months ahead. That is when we will learn of the real potential of the Croke Park agreement in enabling and facilitating fundamental reforms on the scale clearly necessary to do more with less and maintain critical front-line services to the greatest extent possible. A great deal has been undertaken and I realise the pressure that many are under. However, it must be implemented in full because it is part of the agreement.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I call Deputy Adams.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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May I ask-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I will come back to Deputy Martin.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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In the discussions in which the Taoiseach and Tánaiste engaged, was there any discussion of the temporary agency workers directive? If so, will the Taoiseach outline the detail in that regard and say if the Government will be seeking a derogation or if full effect is to be given to the directive? Perhaps the Taoiseach will say also if the issue of legislation to deal with the joint labour committees was discussed. The Taoiseach met during the election campaign with some of the workers involved and will be aware such legislation is of vital importance to the rights of workers and that Sinn Féin has already introduced legislation to deal with this matter. If negotiations are currently underway at what stage are they and when does the Taoiseach expect the legislation to be introduced? Also, are there difficulties between the two Government parties on this issue? Will it be the Labour Party's way or Minister Bruton's way?

Perhaps the Taoiseach will outline the detail of all the issues which formed part of that dialogue.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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There are no difficulties between the parties in Government. The Minister for Jobs, Enterprise and Innovation, Deputy Bruton, is dealing with his responsibilities and will bring forth legislation in due course. As regards the temporary agency workers directive, transposition of the directive is the responsibility of the Minister for Jobs, Enterprise and Innovation, Deputy Burton, who is actively seeking to ensure it is transposed in a manner that respects the employment rights of agency workers while safeguarding the labour market flexibility which Ireland must maintain so as to maximise opportunity and not put us at a competitive disadvantage. This matter was discussed with the trade unions. The Minister, Deputy Bruton, has contacted ICTU and IBEC with a view to their exploring the possibility of agreement being reached between the national social partners on the derogation available under the EU directive, which would allow member states to fix the qualifying period before which equal treatment of pay and employment conditions would apply. I understand that ICTU has strong reservations and sees no reason to set aside the rights of agency workers to allow for a short qualifying period as, in its view, Government has not to date delivered on issues that are close to Congress, including legislation on the joint labour committee system and collective bargaining.

I have appealed to Congress, in the interests of the general good and so as to not in any way put in jeopardy the jobs agenda, to set aside its reservations and see its way to agreeing a 12 week derogation period under the directive, at least for an initial period of 18-24 months, after which progress made on the issues of importance to Congress could be reviewed. The Deputy will be aware that it is hugely important that Ireland can at least avail of the same 12 week derogation period as will apply in the UK. Otherwise we face losing serious competitive advantage on a number of fronts relative to our closest trading partner. These include being a more expensive place in which to do business from the point of view of employing agency workers, a drop in our attractiveness in terms of the score card for securing new foreign direct investment projects in that we would lose points in terms of labour market flexibility that is vital in terms of retaining the multinational sector and a negative impact on the ability of our indigenous companies to grow exports and employment if the possibility of hiring agency workers, even for short-term contracts to meet seasonal needs or production peaks, is effectively costed out of existence. They are the issues we discussed regarding the directive in respect of which the Minister, Deputy Bruton, will shortly bring forth legislation.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Does the Taoiseach have the support of the Labour Party in his efforts to persuade ICTU to swallow its reservations?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is not a case of swallowing reservations, rather it is a case of making decisions in the best interests of creating an environment in which jobs can flourish and where workers' rights can be respected.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Does the Taoiseach have the support of the Labour Party?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Yes.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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There has been a substantial reduction in public servant numbers from 2008 onwards. However, the Government intends to go beyond the numbers achieved up to end 2010 and to seek a further reduction of 25,000. Perhaps the Taoiseach will clarify if that remains the Government's intention and if that matter was discussed with ICTU and representatives of the public service unions.

On the temporary agency workers directive, there has been much discussion and talk about jobs and so on. The so-called jobs initiative was farcical. It literally took money from pensioners but was not allocated to job creation. The directive on agency workers is fundamental and could have a significant impact on thousands of jobs in our economy. My understanding is that it must be transposed by 6 December. Despite that date being only a few short weeks away, we have had no sight of any proposals in regard to that directive. It is simply slipping by with no one paying it any attention. There has been no substantive public debate on this directive which affects thousands of jobs, which calls into question whether people are paying lip-service to jobs.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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A question, please.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Perhaps the Government will set aside time in the House next week for discussion on the directive so Members can articulate their views on it and the social partners can hear what a broad representative sample of the House have to say on it and its impact on jobs and unemployment. A criticism which the Taoiseach would have levelled when on this side of the House, with some validity, was that the social partnership process excluded parliamentarians and politicians from influencing in a broader way the outcomes of that social dialogue.

The Government has entered into a new phase of social dialogue. The Taoiseach has confirmed that he has had discussions with ICTU with a view to persuading it to agree to a derogation of 12 weeks. Earliest indications from Great Britain are that implementation of the directive there has impacted negatively on jobs. In other words, 25% fewer jobs than prior to implementation of the directive are now available to agency workers. I believe it has incredible implications for foreign direct investment-----

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Hear, hear.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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-----and for the multinational companies here which employ large numbers of people seasonally, in particular leading up to Christmas, in the area of consumer and technology products and in a range of other areas. I do not wish to name any companies. However, they do employ substantive numbers of people and have done in recent years owing to their success in terms of the products they have developed. There is a balance to be struck here.

I ask that the Government allow time in the House for discussion on the directive. This would allow spokespersons of the various parties to put forward their perspectives on the issue.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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This is an important matter. Every job we can create is of vital importance. The discussions we had with ICTU were pragmatic and there was understanding on both sides. The views outlined by me earlier for the Deputy were put forward, including the attractiveness of this country for foreign direct investment. We do not want to put ourselves at a competitive disadvantage to our nearest neighbour. Obviously, an issue arises in respect of a derogation period. That matter is of critical importance. The joint labour committee and employment regulation orders issue must also be discussed. I can assure the Deputy that the Minister, Deputy Bruton, is working hard on this issue. While I would prefer that the legislation to be introduced by the Minister were debated in the House, I will put Deputy Martin's proposal at the Whips' meeting and in the event of the legislation not being available in the next week or two I will not object to the House discussing the directive.

While in normal circumstances 40 pieces of legislation would be produced and published during a calendar year, owing to the conditions of the troika 30 pieces of legislation have had to be produced and published this session. The Attorney General's office has been under enormous pressure producing all the relevant legislation. I can confirm to the House that the Minister, Deputy Bruton, is working hard on the relevant legislation. As soon as it is ready, it will be cleared by Cabinet and brought before the House for discussion.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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What happens if the Government does not meet the EU deadline? I am only seeking a debate on the directive. As I understand it, there must be agreement between the social partners before the Minister can proceed with the derogation. The Government could, therefore, be in a stalemate situation by 5 December and the directive would then by default come into play. There is a legitimacy in saying that the parliament needs to be aware of this and needs the opportunity to debate it in advance of that situation arriving as a fait accompli on our doorsteps. I ask that the Taoiseach give urgent consideration to allowing a general debate on the directive, at which time Members can put forward their perspectives.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Taoiseach has already answered that question.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is hoped that an agreement can be arrived at and that we can proceed with debating the legislation. The up-to-date position will become clear in the course of this week. I will speak to the Chief Whip about the possibility of a debate at some stage next week. I have no objection to such a debate and it is not a bad suggestion.