Micheál Martin (Cork South Central, Fianna Fail)

It is appropriate that we discuss the report of the Joint Committee on European Affairs on migration today, in the same week in which Europe Day falls. Ireland has been a full and enthusiastic participant in the development of the European Union from the start. We actively contributed to all of the major developments of the Union from economic and monetary union and the euro, to the opening of labour markets to new members.

I am pleased that the Joint Committee on European Affairs made immigration part of its work programme. I agree with the committee that immigration is a significant issue for Irish society, and the Oireachtas should give particular attention to all of its facets. It is a new challenge for Ireland, and in many ways, it is an indication of our successful performance in growing our economy, creating jobs and ending the historic blights of emigration and mass unemployment.

Ireland has moved away from its history and tradition of outward emigration to become a country of extremely rapid, significant inward migration. This has happened to such an extent that 9% of our workforce, or 170,000 workers, are now foreign nationals. In 1999, that figure was only 3.5% of a much smaller labour force. Our labour force has doubled to 2 million in a decade. While other EU member states have similar proportions of foreign national workers, in those countries these proportions were built up over a generation. We reached this level within a few short years and that is an important point. In 1999, 5,000 work permits were issued. By the end of 2003, 50,000 work permits per annum were issued.

In May 2004, the decision was made to open up our borders to the citizens of the ten new member states, which has led to 160,000 to 200,000 people coming to and leaving Ireland. It is a rapidly developing situation which presents us with significant challenges. Members of the other House and the committee were clear that the decision by the Government to grant immediate free access to the labour market for nationals of the new ten member states from May 2004 was correct. It demonstrated in a positive and meaningful way Ireland's commitment to the European ideal. From an economic migration policy perspective it was also the right decision.

This commitment was influenced by our positive experience of participation in Europe and how we benefited from it. Only 20 years ago we dealt with economic, budgetary and unemployment challenges similar to those which our new European partners face today. In the 1980s, Ireland had economic growth of approximately 1% to 2%, a debt to GDP ratio of more than 100% and an unemployment rate of 17%. As a result, Ireland experienced significant rates of emigration. In that decade as many as 65,000 people left Ireland each year.

How different the picture is now. Irish economic and employment growth is the envy of our European neighbours. Since the enlargement of the European Union on 1 May 2004, Ireland is now an integral part of a single European labour market of approximately 210 million people. The Irish labour market in many ways represents a regional labour market within this larger single European market.

Workers from the ten countries which joined the EU in May 2004 now make up 3% of our workforce, or 62,000 workers. We know from Revenue data that the number who worked here at some time since May 2004 is greater, at approximately 135,000. Many worked here for a while before returning to their countries of origin. The principal sources of European Union migrant workers are 55% from Poland, 18% from Lithuania, 9% from Latvia and 8% from Slovakia. It is not surprising that the greatest numbers come from Poland as it is the largest accession state. Ireland is now the fourth most favoured destination for Polish migrants after the United States, the United Kingdom and Germany.

Workers from these countries have significantly contributed to our economic growth through a diverse range of activities and occupations. Many work in the construction sector in particular, and this has allowed us to address our infrastructural deficit more quickly than we would otherwise have been able to do. Many others have been engaged in the manufacturing, catering, hospitality and agricultural sectors to the benefit of both businesses and consumers.

Most sectors of the economy in which a high proportion of the EU-10 nationals work also show fairly robust levels of earnings growth. For example, many EU nationals work in the construction sector and the latest figures for that sector show fairly strong annual wage growth to the third quarter of 2005 of 6.8%.

As regards future accessions to the EU, in particular that of Romania and Bulgaria, and our policy on access to our labour market of their nationals, the Government will take a decision in this regard before the accession of those countries and after consultation with the social partners.

The Employment Permits Bill will come before this House shortly, at which point I will move an amendment to provide me with a legislative mechanism to make a decision in the autumn on Bulgaria and Romania. A number of factors will be taken on board, such as labour market trends, the degree to which other European countries have embraced the position on open access of Ireland, Sweden and the UK and consultation with the social partners. It depends on the Commission's response to both countries. Accession has been deferred until the autumn and the countries have yet to satisfy the Commission on a number of conditions.

The new Employment Permits Bill is a significant addition to developing an economic migration policy. Within two weeks, Members of this House will have the opportunity to participate in Second Stage of the Bill. The Bill will put in place a statutory framework within which to implement an active, managed economic migration policy. This active management will give priority to migrants in sectors with strategic skills shortages.

As part of these new arrangements, we will introduce a new green card system for those from outside the European Economic Area for occupations where strategic high skills shortages exist which cannot be met from within the European Union. Under this system, green cards will be issued for two years initially and will normally provide a pathway to long-term or permanent residency and citizenship thereafter. It will also involve immediate family reunification. The Immigration Bill brought forward by the Minister for Justice, Equality and Law Reform will include a series of measures which will dovetail with the Employment Permits Bill in terms of family reunification and a more liberal approach to families of those on work permits. It will represent a significant enhancement of the situation and a sensible approach.

This approach will help to address the skills deficits which are likely to persist for some time yet in key sectors of the economy, particularly information technology, health care, construction professionals, internationally-traded services within the financial services, and pharmaceutical or biotechnology sectors. We have had a great deal of discussion on displacement, as there are two sides to that issue. The work of Forfás and the expert group on future skills needs carried out a comprehensive analysis on economic migration, which informed much of the thinking on the Employment Permits Bill. Within that analysis, sectors where we are still significantly short were clearly identified. The logical conclusion is that economic migration will be necessary to make up those shortages. When I meet employers as I travel throughout the country, it becomes even clearer.

In sectors such as construction and hospitality we understand the key issue in social partnership talks is to develop and genuinely put in place an extremely robust mechanism for compliance to ensure exploitation does not take occur. We must ensure employees who come here are looked after and that a deliberate exploitative undercutting of our labour law and Irish workers does not occur.

The Bill provides a number of new important protections for migrant workers who work in Ireland. Most people would see that as reasonable and right. The Irish economy is projected to grow by approximately 4.6% this year and strong growth is also expected for 2007. It is expected that employment will rise by more than 3% or 60,000 this year. The unemployment rate at present is 4.5%. A number of factors have given rise to that figure and we expect it to remain approximately the same until the end of the year.

The challenges before us are brought about by rapid economic growth. One of the key challenges for us is the integration of those who came from abroad to work here. While we have to a certain extent been concentrating on the economic side of migration, we clearly need a strong multidisciplinary approach to the issue which will take into account the social side. Other Departments are dealing with such issues.

The joint committee report was very clear on the need to have a joined up Government approach and proper co-ordination between Departments on economic, social and educational issues for migrants who come here. We must be flexible in our responses to issues as they arise.

It should be categorically stated that employment is an essential first step for integration. It provides a regular income and economic independence, security, status and opportunities for interaction with people from the majority community. I have taken note of the committee's recommendations on ensuring that information is co-ordinated and that there should be greater co-ordination with regard to workers' rights. My Department has a wide and well-established role in providing information to the workforce at large regarding entitlements under employment rights legislation. Adjudication bodies such as rights commissioners and the Employment Appeals Tribunal are also in place to permit workers to vindicate their entitlements.

In the ongoing social partnership talks the Government has indicated it will ensure that workers who have relocated to Ireland from abroad will be subject to a particular focus. A publicity campaign will also be undertaken to set out employee rights in a number of languages, with an emphasis on workers from overseas and on the sectors in which they are employed. In addition, a specific budget will be provided for education and promotion to be delivered in conjunction with the social partners and other civil society organisations.

The employment rights compliance section of my Department currently provides information to the public through call-centre, website and personal interactions on an individual and group basis. It also interacts with a wide range of bodies and organisations in pursuance of its objective of employment rights compliance. The information unit interacts with the labour inspectorate, which in turn inspects or investigates individual cases with a view to attaining compliance, failing which the enforcement section initiates prosecutions and associated recoveries of moneys through the courts.

The labour inspectorate has been increased by over 50% in the past year. It initiates investigations of complaints and engages in planned and targeted sectoral and random inspections throughout the country. The prosecution and enforcement unit processes the enforcement of awards of both the Labour Court and the Employment Appeals Tribunal through the courts. This protection and redress machinery is available to all workers and I enjoin foreign employees to avail of this to the fullest extent. It is in nobody's interest that abuse and exploitation of workers should go unpunished.

I would also particularly like to acknowledge the committee's recommendation that there should be close co-operation with the governments of sending countries. In this regard I mention the FÁS Know Before You Go initiative, which promotes the integration of workers from the new EU member states. This initiative provides information to workers in sending countries on how to get a job. It also aims to encourage people to equip themselves with all the necessary information they need so they understand our employment rights and are aware of how and where to get help from support agencies in Ireland.

In order to raise awareness of employment rights, statutory entitlements, taxation and social welfare systems in Ireland, FÁS has produced a DVD in the Polish, Czech, Latvian, Lithuanian and Slovak languages and a suite of brochures and posters are available in all ten languages. In addition, FÁS has also developed a free telephone interpretation service, which is available in all FÁS employment services offices.

Senators may also be aware that the National Economic and Social Council has commissioned the International Organisation for Migration to undertake a major study on the management of migration In Ireland, including both its economic and social implications. I understand the council is currently formulating its comments on this study and that this work will be completed over the next few weeks. I look forward to the outcome of the council's work on this, which, without prejudging its recommendations, I am sure will also help us to put in place policies and programmes to deal with migration in an integrated manner.

I thank the joint committee for its work in this area, which will provide a useful input to an important issue and will contribute significantly to the formulation of migration policy on an ongoing basis.