Micheál Martin (Cork South Central, Fianna Fail)

I welcome this opportunity to address the House on this important issue again. I also welcome the Senators' contributions, which will help inform the debate on the employment permits legislation that I will shortly introduce to the Houses. The Leader suggested I should bring it to this House first and I will try to oblige her if that is possible.

I will focus on the mutually beneficial outcomes arising from this relatively new aspect of our labour market. I endorse the Senators' comments on the importance of migrant labour to the success of the Irish economy from the late 1990s onwards. As Senators O'Rourke and White said, this has been an important factor in the successive growth rates our economy has enjoyed for a considerable period. I will try to respond to a number of issues that have arisen in the context of this debate, time permitting. I also wish to inform the House of imminent legislative proposals on employment permits and of ongoing Government policies and processes.

I will put the Government policy framework regarding the admission of migrant workers in context. Consistent with international practice, our policy is based on economic needs and seeks to address identified labour and skills shortages. Government policy must be responsive to the constantly changing environment because our labour market's needs continually change. Migration is, and will continue to be, an important part of our development and a major contributor to our shared economic and social goals. Strong economic growth in recent years led to a significant growth in employment levels. Since 1997, the number in employment has increased by nearly 450,000. At the same time, the number unemployed has fallen by almost 80,000 from 10.4% to 4.4%, approximately half of the EU average. The number of long-term unemployed has dropped by nearly 60,000 from 5.5% to 1.5%, approximately one third of the EU average. The latest figures for 2004 show there were 1.9 million people in employment in Ireland.

Ireland now has labour and skill challenges that have necessitated the recruitment of large numbers of overseas workers, principally from the European Union but also from a wide spread of locations. The scale of this is evident in the number of work permits issued in recent years to nationals from outside the European Economic Area. A total of 110,000 non-EEA nationals entered employment in the State in the past five years. Since ten new countries acceded to the EU in May 2004, 80,000 people, of whom 50,000 or 60% have been employed at some stage, have applied for PPS numbers. These are staggering statistics over such a short period.

Our economy is forecast to grow at twice the average EU rate, 4.7% in GNP terms in 2005. The outlook means there will be more skilled jobs to fill, which cannot be done from our own resources. We must pay particular attention to attracting the skills our labour market will require. The enterprise action plan published in March included the development of a skills-based immigration policy as a key task to support enterprise development. This is part of the strategy to move the economy to one that 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 work permits and authorisations should be granted. We will publish a policy paper on this topic later this year.

To reassure the House, I will explain that the current work permits system incorporates a number of measures to ensure that employers adhere to Irish labour law in respect of migrant workers. By providing that it is employers who apply for work permits, this ensures the more effective enforcement of employees' rights and greater traceability. This is a matter we must focus on when the Bill is subsequently published due to the balancing issues involved. We must ensure we have a tracking and traceability system that allows us to get to the bottom of a situation when abuses are flagged. The debate has not been well balanced in this regard to date but we will have an opportunity to address the issue.

In making an application for a work permit, employers must provide details of the company, including its registration number, in order to ensure it is bona fide. An application for a work permit requires a statement counter-signed by the would-be employer and employee of the main functions of the job, salary or wages, non-statutory deductions, other benefits and hours to be worked per week. Work permits are not granted unless there is compliance with minimum wage legislation or with the appropriate joint labour committee agreements, which set minimum salaries and conditions for certain employment categories and to which Senator Quinn referred. In addition, where an employer wishes to renew a work permit in respect of a non-EEA national employee, applications require documentary proof that the stated wages have been paid.

It should also be noted that, where there has been a breakdown in relations between an employer and a migrant employee, the work permits system in recent years has readily facilitated the worker's change of employment. In such circumstances, a new work permit is issued to the person's new employer. This concession acts as a further measure to ensure employers adhere to Irish labour law in respect of migrant workers, as it allows an employee to move to a new employer when there are genuine reasons for doing so.

The fundamental principle underlying the employment of migrant workers in Ireland is that they are treated exactly the same as Irish workers in terms of pay and conditions. This is underpinned in our equality legislation and also in the corpus of employment rights legislation, which is also applicable. For the avoidance of any doubt, legislative provision was made in section 20 of the Protection of Employees (Part-Time Work) Act 2001. No one in the House or elsewhere in Ireland would dispute this fundamental principle, which is perhaps best enshrined in the mantra of equal pay for equal work.

I am particularly conscious that legislation is not made effective just by being written into the Statute Book. To be effective, it must be acceptable, reasonable and enforced. Over the past 20 years or more, we have put in place a whole framework of employment rights and associated equality legislation. Much of this arose as the European social model evolved. All of this legislation was introduced with the support of this House and with the engagement and acceptance of the social partners. As such, it is an achievement of which we can be proud. There are now nearly 2 million people at work in Ireland, all of whom are covered by this body of legislation. Most people do not know or need to know the intricacies of the legislation. However, they are aware of their entitlements concerning hours worked, holiday periods, redundancy entitlements, protection from unfair dismissal and entitlements under the national minimum wage or registered employment agreements. Employers are likewise aware of their obligations. We have a body of legislation that has gained acceptance right across workplaces and the nation.

This is the legislative framework and the workplace into which migrant workers arrive, thrive and, as many do, prosper. Their experiences in the majority of cases are positive but I am profoundly disappointed when it is otherwise. As I said during my previous visit to this House, I condemn any exploitation of migrant workers in any shape or form. My Department, in developing proposals for employment rights legislation, always consults the social partners. Likewise, I and my colleague Minister of State, Deputy Killeen, consult with the social partners in bringing proposals before Government and the Oireachtas for adoption. This ensures acceptance of the proposals and widespread compliance. To assist compliance, my Department adopts an integrated and complementary approach of information provision, inspection with a view to compliance and, if necessary, prosecution where compliance is not achieved. By way of illustration of these actions, it is worth examining the level of activity in each of these areas in 2004.

My Department's employment rights information unit received over 150,000 queries from employers and employees by telephone, e-mail or in person, inquiring about the operational features of employment rights legislation. In the majority of instances, the provision of clarification and user-friendly explanatory material on the legislation enables misunderstandings to be put right. I should also mention the invaluable assistance that the national network of Citizens Information Centres provides in delivering a similar service at local level with the support of the Department. People also seek information from the Department by way of the dedicated employment rights section of its website, which by far receives the greatest number of the Department's Internet hits. Information is generally provided by means of user-friendly frequently asked questions but people may also drill down through the explanatory books to the legislation and supporting statutory instruments.

Where particular issues arise, the information unit will either advise the labour inspectorate or direct individuals towards the rights commission service, which provides a redress system under certain legislation. The inspectorate also receives complaints from a variety of sources, including other Departments.

Last year the labour inspectorate conducted 5,160 inspections, so it is not as though people are sitting around waiting for things to happen. There is ongoing activity across the full range of legislation. Arising from this inspection activity and as a result of advice and guidance given, €486,000 was paid back to employees. In other instances holiday entitlements were established. There were 14 prosecutions initiated last year and the inspectorate currently has 600 cases under investigation.

It is clear that wide-scale acceptance of legislation is important and information provision greatly assists compliance. It must be said that when shortcomings are brought to their attention, employers generally readily comply and often cite a lack of appreciation of the body of legislation. The figures I referred to earlier must be placed in the context of a workforce of 2 million.

The labour inspectorate concentrates on those sectors of the economy where workers are vulnerable, either by reason of their age under the Protection of Young Persons Act 1996, or where there are joint labour committees establishing terms and conditions in, for example, the hospitality sector, security industry and the retail area. The existence of sectoral terms and conditions, agreed by the social partners in the joint labour committees, promotes acceptance but it also imposes a requirement that all employment falls into line and it is here that the labour inspectorate plays a role. I recently announced the appointment of an additional 11 staff for the inspectorate and it is my wish that these additional resources have a specific emphasis on sectors where migrant workers are concentrated. This is in keeping with the inspectorate's primary area of activity.

The legislative framework, while extensive, continues to evolve and develop. Of particular interest in this area are measures I intend to include in the employment permits Bill 2005. This Bill is in the final stages of preparation and will have, among its principal objectives, provisions for the protection of migrant workers' rights. It is intended that employers will be prohibited from deducting from their remuneration of migrant workers any costs associated with their recruitment. Employers will also be prohibited from retaining personal documents belonging to migrant workers. This will increase worker protection. The legislation will also address the question of who holds the work permit. In parallel, the Bill will enable the introduction of a green card-type system, which will allow highly-skilled and highly-paid people to enter the labour market in Ireland for an extended or indefinite period.

A number of reviews are currently under way with a view to simplifying and introducing coherence across the full body of employment rights legislation, as well as looking at the operational aspects of the employment rights bodies themselves and the legislative framework in which they operate. The framework for collective agreements reached through joint labour committees is also under review.

These reviews arise from the programme for Government and also the mid-term review of Sustaining Progress. The work now under way reflects an overall desire to revisit, simplify and consolidate the legislation, while not in any way changing entitlements under that legislation. The bodies and associated procedures for the vindication of employment rights are individually seen to be effective but the overall system appears to be unduly complex. The objective of the various reviews is to ensure a coherent and user-friendly system of employment rights legislation and vindication procedures through the employment rights bodies.

I am bringing proposals to Government that will result in the establishment of an employment rights group on which the social partners and the employment rights bodies will participate. This group will oversee a process that will simplify and streamline the complaint, appeal and enforcement procedure across all of the bodies. Customer focused working groups will be established in each of the bodies to address identified issues and a programme will be implemented to simplify, harmonise and consolidate the corpus of employment rights legislation. I look forward to bringing a consolidated employment rights Bill to this House, which will be developed in conjunction with the social partners.

The mid-term review of Sustaining Progress requested that a review be undertaken of the mandate and resourcing of the labour inspectorate. Following this, a discussion document was sent to the social partners for comment last January. The review highlights that the complexity of legislation in the employment rights area is impeding understanding and compliance. Likewise, there are confusingly different roles for the inspectorate under different Acts and this gives rise to ambiguities. These legislative anomalies are among the issues that will be addressed by the Government in developing a consolidated employment rights Bill. The discussion document was well received and a spectrum of possible models for compliance checking and enforcement have been identified and presented for consideration. Deliberations with the social partners will begin when the Department receives their final responses to the discussion document. However, it must be pointed out that the document signals that fundamental changes in approach must be considered.

A review of the joint labour committees is currently being undertaken by the Labour Relations Commission and the final report will become the subject of interaction with the social partners. Last May my Department published a discussion paper reviewing the operation of the Employment Agency Act 1971. Having reviewed submissions from a range of interests, including the social partners, my Department is currently finalising a policy paper which, following consultations with the Office of the Attorney General on some of its details, will be circulated for further comment. The intention is to bring a legislative proposal to Government following this second round of consultations.

At present the proposal is that all employment agencies, both Irish and overseas, will be required to be registered. All such agencies will be required to comply with the terms of a statutory code of practice, which would set out the practices and standards for their operations. The code will be overseen by a statutory monitoring and advisory committee and it would make recommendations on the revocation or suspension of registration and/or the prosecution of employment agencies that breach the code. It is my intention that any employer who recruits a worker from an unregistered agency, either Irish or non-Irish, will be guilty of an offence and liable to prosecution. These proposals will shortly be contained in a policy paper and all comments on them will be welcome.

The legislative framework is dynamic and evolving with the needs of all and this is as it should be. It ensures that the employment rights legislation is acceptable and practical in its operation. The House will recognise that the development of our legislative framework is ongoing, responsive to actual workplace experiences and undertaken in the context of partnership. I am confident that the resulting improvements will have widespread support both within and outside the House.

The cornerstone for our employment rights regime is that no distinction is made between Irish and migrant workers. That is the spirit of the motion before the House, that all workers, irrespective of whether they are Irish or not, should be treated the same.

When I was last in this House discussing this topic, on 12 April 2005, the emphasis was on a particular situation that was unfolding involving Gama Construction and its operations in Ireland. At the time I was precluded from commenting on that case because the matter was before the High Court. Given the level of disquiet raised by this matter, I am most grateful to the courts for the urgency accorded to the full hearing of the matters at issue, which is continuing in the High Court today.

I wish to update the House on developments concerning Gama Construction. I can inform Senators that today, on completion of the natural justice requirements of interested parties and with the permission of the High Court, I am sending the Labour Inspectorate report into alleged breaches of employment rights in Gama Construction Limited and related companies to the Minister for Social and Family Affairs, the chairman of the Competition Authority, the Director of Corporate Enforcement, the Garda Commissioner, the Director of Public Prosecutions and the Revenue Commissioners. All of these bodies have prosecutorial powers.

Over the May bank holiday weekend the Labour Relations Commission completed exploratory discussions with SIPTU, Gama Ireland and Gama Turkey on issues central to the current dispute between the parties. The commission believes that, with the co-operation of the parties, it is in a position to assist in the resolution of these matters. I believe that a process of engagement between the parties, chaired by the Labour Relations Commission and with the commitment of both parties, can result in a positive outcome. I urge continuing engagement with the Labour Relations Commission, as all matters are ultimately capable of resolution.

I have attempted to demonstrate to Senators that the Government is very conscious of the contribution of migrant workers and places particular emphasis on ensuring migrant workers' rights are protected from the moment of engagement with the Irish workplace. We will take lessons from experiences to date and apply those lessons to legislative and other policy proposals.

Irish workplaces have shown great generosity in the past in responding to various challenges and I urge them to look to those who are new to this country and I encourage them to offer guidance and support. It is to everyone's advantage that we have open and welcoming workplaces. I endorse the statement from Senator Quinn and am interested in his point about language training. I acknowledge that more must be done in conjunction with the social partners. We have had some preliminary discussion with the social partners about how the Department can be more supportive in areas like language training for union members and so forth. There is a serious issue surrounding language and communications, which was clearly demonstrated in the Gama Construction case. Senator Quinn is correct in arguing that employers, trade unions and Government have a collective responsibility to ensure that workers' rights issues are dealt with correctly. We can do that if we work together.

I am aware of the contents of the motion before the House but I hope that Senators will accept our bona fides on this issue and that we can all agree on the broad principles of the way forward, in terms of migrant worker legislation, rights and entitlements.