Micheál Martin (Cork South Central, Fianna Fail)

I welcome the opportunity to address the Seanad on an issue which is helping to drive Ireland's social and economic development. Immigration, which is and will continue to be essential to the development and prosperity of Irish society, is a relatively new phenomenon in this country. We have known the other side of the coin for generations. I want to send a clear message that people who come to Ireland seeking employment are welcome. It is a shared expectation on the part of Ireland, its people and its new arrivals that the experience will be beneficial to all. Ireland needs to overcome its skills shortages if it is to deliver the essential services and infrastructure which are demanded and expected and will benefit everyone.

I am heartened when I hear of the excellent welcome afforded to those who have come to this country to participate in and contribute to Ireland's vibrant society. I am deeply disappointed when I hear of instances in which the expectations of such people are not met for any of a variety of reasons. It infuriates me when I hear of instances of deliberate mistreatment, which do a great disservice to Ireland and its people. The despicable people who engage in such practices prey on the inexperienced and vulnerable and have no place in our business community or society. The business community does not condone such sharp practices. Although those who work with migrant workers and the Irish people as a whole do not condone such practices, they continue to occur. I commend those who help migrant workers to settle and integrate. I commend them on the support they provide in interacting on behalf of migrant workers. I urge work colleagues and neighbours of migrant workers to extend the hand of friendship and to offer support. It will be an enriching experience for everyone involved.

I am satisfied that the Irish experience of the vast majority of migrant workers is positive. Many extended families in Europe and further afield are aware of the Irish experience of their loved ones and we are all saddened when we hear of instances where people are mistreated and can only imagine the distress that causes for friends and families. We all appreciate the harm it does to Ireland's reputation abroad.

I am aware of the keen attention which this House pays to topical issues of concern to the Irish people, the business sector and, indeed, migrant workers. I would like to update the Oireachtas about an allegation made by Deputy Joe Higgins in Dáil Éireann on 8 February 2005 to the effect that Gama Construction Ireland demands excessive hours of its workers and pays between €2 and €3 per hour. I described allegations such as this as infuriating in that, if true, they besmirch the good name of Ireland and Irish employers at home and abroad. I immediately asked the duly authorised labour inspectorate in my Department to open an investigation and this it did the following day. It conducted a thorough investigation of the allegations and where it encountered issues outside the immediate scope of the allegations, it made limited observations and directed issues to the attention of other regulatory bodies that could have a role to play.

The inspectorate brought its key values of independence, fairness, thoroughness and speed to its investigation. It consulted widely with current and former workers, industry associations, trade unions, the company's professional advisors and secured the co-operation of Gama itself to the process. Gama also gave a series of assurances to the labour inspectorate that no Turkish workers would be relocated or repatriated without reference to the inspectorate until further notice.

The investigation started from the premise shared by many parties — my Department, the unions and the industry associations — that Gama was a good employer. This shared belief was based upon assurances given by Gama, its auditors and its legal advisor to all the above parties and the media until recently that Gama pays the going rate and was fully compliant with employment rights legislation. The going rate, also called the joint industrial council norm for skilled construction workers, is €16.20 per hour, whereas the only legally enforceable rates are those in the registered employment agreement, which range from €8.09 per hour for craftsmen to €7.36 for construction operatives, grade 1. While the statutory minimum rates are not in line with the going rate, it is a matter for the employers and unions to review the position — this process has been stalled since 1998 by reason of a judicial review.

All employees in Ireland are covered by Irish employment rights legislation and to avoid any doubt, section 20 of the Protection of Employees (Part-Time Work) Act 2001 grants that coverage, particularly to workers posted to Ireland, irrespective of nationality or place of residence. I received a report of the investigation from the labour inspectorate into alleged breaches of employment rights in the sites of Gama Construction Ireland and other companies on 6 April. On receipt of the report I immediately made known my wish to publish it as soon as possible but I am currently prevented from doing so pending the resolution of High Court proceedings initiated by Gama.

Having read and considered the report, I fully accept and endorse the recommendations which are addressed to my Department, other Departments, the Revenue Commissioners, the Garda Síochána and a range of regulatory bodies. It is my intention to forward the report to these bodies to enable them to look into the consequences arising. It is my objective, however, that all workers in Gama, past and present, are given their due entitlements and that their terms and conditions are in accordance with the law and are honoured in full.

The labour inspectorate is continuing its investigations and if breaches of employment legislation are found they will be enforced in full. I sought and obtained assurances from Gama that no reassignment or repatriation of workers would take place without prior consultation with the labour inspectorate. I acknowledge that Gama has to date honoured its commitments in this regard.

I met yesterday with ICTU, SIPTU and the Construction Industry Federation, which all have concerns about these issues. I want to see a partnership approach developed to oversee compliance and restitution and to ensure instances such as this do not re-occur. I intend to meet with Gama senior management and have opened contact with the Dutch bank where it is maintained the Gama workers have their accounts.

Yesterday I also strengthened the labour inspectorate by sanctioning an increase of 50% in the number of inspectors assigned. These additional inspectors will place a specific emphasis on sectors where migrant workers are concentrated. The additional inspectors will strengthen the labour inspectorate's capacity to ensure that workers in these sectors receive their entitlements under employment rights legislation. This expansion of the inspectorate will bring the authorised number of labour inspectors to 31 and they, together with support staff and their colleagues in the employment rights information unit and the prosecution unit, make up an integrated group dedicated to ensuring people get their entitlements.

For the benefit of the House, I should explain the policy framework regarding the admission of migrant workers to this country. Consistent with international practice, our policy is based on economic needs and seeks to address identified labour and skills shortages. Obviously, our policy must respond to a constantly changing environment. Our labour market needs are continually changing as our economic performance changes.

For many centuries Ireland was a country of net emigration, with large numbers of young people emigrating to find employment overseas. However, this all changed in the 1990s, when rapid economic growth transformed the country from one of net emigration to one of net immigration. From 1997 to 2000, in particular, Ireland experienced an exceptional level of growth. This led to an enormous growth in jobs and employment. Since 1997, the numbers in employment have grown by nearly 450,000. At the same time, the number unemployed has fallen by almost 80,000, with the unemployment rate falling from 10.4% to 4.7%, about half the EU 25 average. The number of long-term unemployed has dropped by almost 60,000 from 5.5% to 1.4% per cent, about one third of the EU 25 average.

As a consequence, labour and skill shortages have become apparent, necessitating the recruitment of large numbers of overseas workers, principally from the European Union, but also from a wide geographic spread of destinations. The scale of this is evident in the numbers of work permits issued to nationals from outside the European Economic Area in the past number of years. The EEA consists of the 25 EU member states, Iceland, Liechtenstein, Norway, and for this purpose, Switzerland. In 1999, 6,000 work permits were issued. By 2003, this figure had increased to 48,000. A total of 110,000 non-EEA nationals entered employment in the State in the last five years.

Our future economic outlook is good. The Irish economy is forecast to grow in 2005 by 4.7% in GNP terms, twice the rate of the EU-25 average. This positive situation has been recognised by the European Commission which, in its commentary on Ireland's stability and growth pact 2005-07, notes our strong growth and sound public finances. The good economic outlook means that a considerable future expansion of employment and demand for labour is also expected. This will mean increasing the numbers in our labour force. Given the falling numbers of young people coming into the labour market, there will be a need to mobilise labour supplies from other sources, including from other countries.

Not only must we supply the numbers of workers we need, we must also ensure that we supply the skills that our labour market needs in the future. The enterprise action plan published in March included the development of a skills-based immigration policy as a key task. This will support enterprise development as part of the strategy to move the economy to one which is both knowledge-based and innovation-driven. Forfás and the expert group for future skills needs are currently engaged in research and consultations on the detailed issues entailed in the implementation of this policy, including the types of skills for which permits should be granted. This work will form the basis for a policy paper to be published by my Department later this year.

My Department is also currently in the final stages of preparation of a new employment permits Bill, which will govern the issue of all employment permits for nationals from outside the European Economic Area. The Bill will put the existing employment permit administrative arrangements on a legislative footing and thereby provide greater accountability and transparency. The Bill allows for a more managed economic migration policy and enables the introduction of a green card system for highly skilled migrant workers. It will also enshrine a number of protections for migrant workers. Employers will be prohibited from deducting from the remuneration of migrant workers any costs associated with their recruitment and from retaining personal documents belonging to migrant workers.

Our economic migration policy must change as Europe changes. In advance of the recent enlargement of the EU, the Government, in an expression of solidarity with the new member states, decided to allow full freedom of movement to citizens of those states from the date of their accession to the EU on 1 May 2004. In this context, the Government decided that any future labour shortages should in the first instance be met from within the EEA, particularly as there are approximately 19 million people currently unemployed in the EU.

A significant proportion of work permits in recent years were granted to citizens of the new member states who no longer require work permits. This has resulted in a significant reduction in the number of work permits issued since 1 May 2004. The number of new work permits issued in 2003 was 22,000 while the corresponding figure for 2004 was 10,000.

It might be useful to the House to describe the manner in which the current employment permits system operates. Nationals from any state other than those in the EEA must obtain an employment permit before entering employment in the State. Generally, employment permits take one of the four forms of work permit which are work authorisation or visa, inter-company transfer authorisation or permit to facilitate services contracts. The work permits system is the main vehicle for nationals from outside the EEA to enter the Irish labour market. Work permits are issued to employers who employ non-EEA nationals to fill specific vacancies they have been unable to fill from within the area. An employer is required to undertake an economic needs test which requires it to advertise for four weeks the employment position it is proposed to fill with Ireland's national employment service, FÁS, before it is permitted to offer the job to a non-EEA national.

Work permits are issued for a maximum of one year but can be renewed annually. While the criticism has been made that the issuing of work permits to employers leaves an employee open to abuse, it should be noted that a new work permit can be issued to an employee's new employer if he or she changes jobs for genuine reasons. The second type of work permit is a working visa or work authorisation. Such permits were introduced to provide greater access to the labour market for non-EEA workers in possession of skills in very short supply in the economy. The relevant skills categories include those of health and medicine professionals, information computing technology workers and professional construction qualifications including, for example, those of architects, engineers and town planners.

Unlike work permits, working visas and work authorisations are issued to individuals rather than to their employers. Working visas apply to residents of states in respect of which a visa is required upon entry into Ireland and work authorisations to states in respect of which a visa is not. The scheme is operated through Irish embassies throughout the world. Recipients of working visas or work authorisations are free to change employment within the economic sector of their visa. In addition, working visas and authorisations are granted for two years and can be renewed thereafter by the immigration authorities. Over 1,300 working visas and work authorisations were issued in 2004.

The third type of employment permit involves the inter-company transfer facility. This allows companies to bring in senior managers or skilled staff from an overseas branch of a multinational corporation to the Irish branch of the same organisation to fulfil a specific and short-term role. As such work is by definition temporary, employers are not required to advertise the positions in question with FÁS. Since October 2002, inter­company transfer concessions have been granted on a case-by-case basis.

I would like to provide the House with up-to-the-minute information on my work on the position of Gama workers in Ireland. Members will understand if there is some disjointedness between these and my earlier comments. Contact with the Dutch institution concerned, Finansbank, was formalised this morning when the Irish ambassador to the Netherlands contacted it to seek clarifications on behalf of the workers. I spoke with representatives of the bank this morning to discuss the putting in place of a mechanism to facilitate immediate access of individuals to their account balances. I was provided with absolute assurances and guarantees that all moneys held in the relevant accounts in Finansbank in the Netherlands will be given to the workers concerned. I will make a further statement on the matter today. I came to the House fresh from my telephone call with the bank, which is why I was late to arrive. Apparently, some workers have provided instructions on their accounts and, apparently, a substantial volume of instructions have issued from Gama on behalf of workers.

I will meet with the workers and their representatives this evening when I will be in a position to provide them with the latest information I have. I have also arranged to meet with senior management from Gama International to apprise them of my serious concerns about the operations of its subsidiary in Ireland. My officials will maintain contact with Finansbank today and a member of the Department's labour inspectorate will visit it in the Netherlands accompanied by a small delegation of workers' representatives to establish a mechanism which assures access to accounts by workers and the honouring of instructions they make on the moneys. The Department will officially monitor the mechanism in conjunction with workers' representatives. We met with SIPTU and ICTU yesterday and they asked for such a mechanism to be put in place. As Members will be aware, Deputy Joe Higgins sought similar reassurances in the Dáil on behalf of the workers he has represented over recent weeks.

While I am constrained by court order from commenting on the inspector's report, we are robustly submitting the Department's case for the lifting of the injunction from Gama Turkey. If we succeed, I will be enabled to publish the report to the House. It is a matter of substantial public interest to publish the report and there is a strong expectation within both Houses that it should be. The Department was served with notice of a further injunction against publication from Gama Ireland. I have instructed that this injunction should also be opposed vigorously.

I hope I have succeeded in providing the House with an insight into my approach to migrant workers and clarifying Government policy in the detail required to inform the debate on this important issue. I look forward, a Chathaoirligh, to the debate, although I hope it will be appreciated that other Ministers will also attend as I must continue to address the matter in question for the rest of the day.