Michael Finucane (Fine Gael)

The principle of social partnership goes back to 1987 and I hope the current round of partnership talks is a success. I note with interest that the farming pillar made the nitrates directive an issue and stated that unless there was movement on it, the farming community would not participate. This is a critical issue. Teagasc and the Departments of the Environment, Heritage and Local Government and Agriculture of Food have made a total mess of the process. The pig and poultry industries illustrate this. I attended a meeting last night of the producers in my country and they expressed their concerns about the directive and the way it will finish that segment of the business. The pig industry is extremely concerned and it now appears that poultry producers can no longer offer litter to tillage farmers because there is nowhere now that chicken litter can be spread. The agricultural sector should seek movement on the directive in the talks.

While the economy is booming and we need immigrants, much of our success is built on shifting sand, particularly construction. The construction industry is booming at present but many people ask how long this can continue. A major proportion employment is concentrated in the industry and a high percentage of our gross national product is derived from it.

We used to point to our success in exports but a displacement factor has evolved, with traditional jobs being lost in this economy because we are uncompetitive. Competition will be important in the partnership discussions.

While most of us want public servants to be rewarded, there was criticism of the last round of benchmarking. I understood Senator O'Toole's remarks earlier but benchmarking lacked transparency. The relativities and reports that framed the process were subsequently destroyed and no one knows how comparisons were made. If another round of benchmarking takes place, it is important that it is transparent and that real productivity linkage is associated with it. That linkage was not involved in the previous process. Many reports were produced internally as a form of justification. We did well out of benchmarking as Oireachtas Members, but people who see us as being in a more sheltered environment should be able to see how the process works.

I am concerned that the homeless problem remains. Fr. Seán Healy, a major voice speaking on behalf of the homeless, is involved in the talks and we should make a determined effort to end homelessness. It is not rocket science to identify the homeless in Dublin. I watched an awards ceremony last night and Fr. Peter McVerry received an award from the record industry for helping the homeless. It was interesting to hear those he had helped speak of how he had given them a chance. I was pleased that a person of his stature received such an award. Departments can dovetail their work with such people and resolve these problems. We must not have a situation where, within a short distance of this House, we encounter people who are homeless in doorways. I hope that issue will be addressed.

It is a matter of concern that those who raise the issue of immigration, even in a constructive manner, are accused of xenophobia or racism. I know many immigrants from eastern Europe who have taken up jobs and make a valuable contribution in my local community and long may that continue. It would be wrong, however, not to express concern about the prospect of free movement for citizens of the states set to join the European Union in 2007, namely, Bulgaria and Romania. We may need to take a different approach when that enlargement takes place.

It is interesting to note that while Ireland, Sweden and the United Kingdom agreed to accept immigrants from the ten accession states immediately — these immigrants have enriched our communities and are valuable assets in the marketplace — France, Germany and the larger EU economies have still not given their imprimatur to allowing immigration from the ten new member states. We need to develop a comprehensive immigration policy based on an objective examination of the forthcoming enlargement in 2007. We must ask whether we can have an open door policy towards immigration from Bulgaria and Romania and, at a later date, Turkey.

While the economy is developing well and full employment has been achieved, three reports published today on construction activity, tax shelters and so forth make for interesting reading. They show that the petrol was poured on the fire, particularly with regard to the construction industry, even though it was already well lit. People are galled by the fact that a condition of participation in many of the tax incentive schemes and shelters was an income in excess of €250,000.

In other cases, wealthy individuals were able to build up a pension of €100 million. In contrast, ordinary people have been offered €2,500 to top up their pension by €7,500, provided the money is drawn from their SSIA scheme. This welcome initiative, which applies specifically to those who pay income tax at the 20% rate, is progressive but minuscule when compared with the type of tax incentives offered to those who did not need them but availed of them to avoid paying tax.

Research undertaken by the Department of Finance found that a significant number of those earning in excess of €1 million pay no tax. It is difficult to explain the contrast between the tax incentives available to high-income earners and those available to low-income earners. I am glad many schemes have ceased because serious question marks hang over them in terms of the return to the State from the projects carried out under them vis-À-vis the level of tax foregone.

I wish participants in the social partnership talks well. On the Minister of State's brief, I hope the number of labour market inspectors increases to a level which will ensure fair play in the workplace. I also hope we will not continue to read about the exploitation of immigrants who came here to work for the minimum wage. The newspapers have highlighted many such cases, including one involving a subcontractor working for a reputable member of the Construction Industry Federation which paid a derisory amount per hour, and others in the area of horticulture, particularly the mushroom industry. Having welcomed immigrants to Ireland, let us treat them with respect. It is incumbent on the Department of Enterprise, Trade and Employment to expand the number of labour inspectors in order that they are in a position to keep tabs on the employment market and ensure abuses do not take place in the system.