Micheál Martin (Cork South Central, Fianna Fail)

This Bill passed all Stages in the Dáil following a constructive and wide-ranging debate. We were happy to take on board a number of Opposition amendments where we felt they made genuine improvements to the Bill.

In overall terms, the Bill provides a framework within which there is the flexibility to adapt and use different migration policy instruments to respond to changes in the economy and labour market as they arise. Flexibility is the key to this legislative framework. The Bill has two key objectives. First, it puts in place a statutory foundation which will be built upon to implement an active and managed economic migration policy. The three pillars of this employment permit policy will be green cards, an intra-company transfer scheme and a revised work permits system. Second, it provides a number of new and important protections for migrant workers in the Irish labour force. I intend to describe the context for the Bill, I will then discuss its primary objectives and I will conclude by describing the sections of the Bill in detail.

As regards context, economic migration policy must be responsive to different stages of economic development and labour market conditions. Our own recent experience teaches us this lesson. Ireland has moved from being a country of emigration to one of immigration in a remarkably short period. In 1986 the unemployment rates was over 17% and almost 45,000 people were emigrating annually. Twenty years later the Irish economy has experienced a major reversal in fortunes. The economy continues to perform strongly. Economic growth of approximately 4.6% is projected for this year and strong growth is also expected for 2007. In consequence, total employment is projected to rise by over 3%, or 60,000, this year, while unemployment will be at a low rate of 4.3%.

We cannot be complacent. We must quickly develop an innovation-driven, knowledge-based economy if we are to continue to compete in the global marketplace. This means that we need to upskill our workforce. Our skills policy will be predicated, first, on upskilling our resident workforce; second, on maximising the potential of EEA nationals to fill our skills deficits; and, third, on the introduction of a new green card and revised work permit system for non-EEA nationals to fill strategic high skills deficits which cannot otherwise be resolved. Our buoyant employment market has attracted workers from abroad. We now have significant inward migration made up of returning Irish nationals, workers from the European Economic Area — including the new accession states, non-EEA nationals which are the subject of this Bill, and considerable numbers of students. Most of those coming to Ireland to work in the past two years have been from the new EU member states.

On 1 May 2004 Ireland fully opened its labour market to the nationals of these new EU states. Since then nationals of these states have been free to come to Ireland to work or reside without restriction or prior permission. They may change employment as circumstances or opportunities arise. The only requirement for entry into the labour market is the need to arrange a personal public service or PPS number for social insurance purposes. This is a universal requirement and applies to Irish and non-national people working in Ireland.

Since May 2004 more than 200,000 PPS numbers have been issued to EU-ten nationals and Revenue data indicate that approximately 70% of them may have participated in our labour market at some stage. Many will have come to work in Ireland for a while before going home again. This influx from the new accession states has had a major impact on the number of work permits being granted. The number of new work permits issued has fallen from close to 22,000 in 2003 to just less than 7,400 last year. There would also have been renewals of permits.

Employers source most of their labour requirements from within the enlarged European Union. In general, a sufficient pool of potential labour exists within the European Economic Area to meet Ireland's requirements for low skilled jobs but not all of our high skills needs can be met from this source.

The report published by the expert group on future skills needs and Forfás in October 2005, entitled Skills Needs in the Irish Economy: the Role of Migration, identified sectors where the skills needs of our economy would not be met from within Ireland or the European Economic Area. These sectors include information and communications technology, health care, construction, financial services, engineering, pharmaceutical and biotechnology.

In this context, the Bill puts in place a statutory framework within which a responsive, managed and skills-based immigration policy can be implemented. Economic migration policy for nationals from outside the EEA will be vacancy-driven rather than based on quotas or points. That means that the core of the policy is the offer of a job. It will be transparent and have the potential to react to changing labour market conditions. It will provide protections for migrant workers from potential abuse by unscrupulous employers.

I will outline the main features of the new green card and work permit arrangements. The green card system will be for occupations where there are high level or strategic skills shortages. The key features of this new green card system will be as follows. Where the annual salary, excluding bonuses, on offer is in excess of €60,000, which is twice the average industrial wage, the green card will be available for an extensive list of occupations. In effect, all occupations except those which would not be in the national interest offering this level of remuneration will benefit from this valuable concession. The new green card arrangements will comprise immediate family reunification and immediate unrestricted access to employment for spouses and normally a pathway to permanent residency after two years. Green cards will also be available in the annual salary range from €30,000 to €60,000, which is between the average industrial wage and twice that level, for a restricted number of strategically important occupations where we are experiencing skills shortages. These occupations will be identified taking into account the advice of the expert group and will be reviewed on a regular basis. The new green card system will ensure that Ireland can attract and retain the skilled personnel needed to quickly move our economy to one in line with the vision of the enterprise strategy group's report.

The revised work permit system will have the following features. Work permits would have to be applied for in respect of those occupations in the annual salary range from €30,000 to €60,000 for which green cards will not be issued and a limited number of occupations below an annual salary of €30,000 where there are significant labour shortages; these occupations will be identified after taking the advice of the expert group. In both cases a labour market test, including advertisements in the national and-or local press, showing that the positions could not be filled from within the EEA, will need to be met. Work permits will be granted first for a period of two years, and then for a further period of three years. The fee will be the same as now — €500 per annum; in other words, €1,000 for the first two-year period and €1,500 for the following three year period.

The intra-company transfer scheme will also be re-established on a formaI basis under the new employment permit system. This scheme allows for temporary key management transfers from overseas associate or affiliate companies to their Irish branches or headquarters. This scheme of permitting these transfers, which may be for up to five years, will align our system with current best international practice in this regard.

Another key objective of the Bill is to strengthen the protections for migrant workers. On application by either employer or employee, the green card or work permit will be granted to the employee; and the permit will contain a statement of the entitlements of the migrant worker including their remuneration, their right to change employers, and any deductions for board and accommodation. It will be accompanied by a summary of the principal employment rights of the employee. An employer who contravenes any of the provisions of the Bill is guilty of an offence and may be liable for a fine of €5,000 up to €50,000 and-or imprisonment for a period from 12 months up to five years. I acknowledge the welcome which these provisions received in the Dáil.

Section 1 provides definitions for certain terms used throughout the Bill. In addition, subsections (2) and (3) address the circumstances under which a recognised employment agency enters into a contract with a person to work or perform a service for a third party. Employment agencies may not apply for an employment permits on behalf of a third party. Members will no doubt be pleased to note that the more appropriate term "foreign national" has replaced "non-national" in the Bill.

Sections 2 and 3 amend section 2 of the Employment Permits Act 2003 to allow the employment of foreign nationals in accordance with the provisions of section 7. An amendment was introduced on Committee Stage which placed the duty on a primary contractor using sub-contractors who in turn employ non-EEA workers to perform a task or render a service to ensure that such workers are permitted to work in the State under the employment permit arrangements.

Sections 4 to 6 state the various conditions under which an application for an employment permit may be made and the information which must be provided. Section 4 provides for the making of an application and outlines the four categories of persons who may apply for an employment permit under this Act — an employer in the State, a foreign national, a foreign contractual service supplier, and any other person party to the employment of a foreign national in the State.

Section 5 provides that all employment permits are granted to the foreign national employee, irrespective of who is the applicant. This is one of the more significant changes that the Bill proposes. Work permits are currently issued to the employer. Granting them to the employee will increase the power of migrant workers in the employment relationship.

Section 6 specifies the information to be provided in an application for a permit by an employer. The information which is required mirrors existing specifications with regard to work permit applications. It ensures that the proposed candidate has the necessary skills qualifications and-or experience for the position and that the position is of a nature that would require to be filled by a foreign national.

Section 7 specifies the information to be provided in an application for a permit by a foreign national, that is, in applications for green cards by foreign national employees. This information is currently required to be provided by applicants for work visa or work authorisation.

Section 8 provides for the granting of employment permits by the Minister. This is a fundamental part of the employment permit process, which until now has not been provided for in legislation. It provides for the granting by regulation of permits of unlimited duration to foreign national applicants — that is, it will provide for the introduction of the new green card system.

Section 9 provides for the issuing of employment permits granted under section 7 and for particular information to be stated on the permit. An employment permit granted under section 7 shall be issued to the foreign national employee. Where the application was made by the employer a copy of the permit will be issued to them. Information relating to the rights and entitlements of the migrant worker, including their remuneration and a statement of the national minimum wage, the right to change employers and the prohibitions on deductions from remuneration and retention of personal documents will be stated on the work permit.

Section 10 is designed to meet our EU treaty "Community preference" obligations not to grant an employment permit unless it has been offered to EU nationals first. Section 11 stipulates further conditions for consideration when granting of work permits, including ascertaining the legitimacy of applications for employment permits, the economic policy of the Government at the time and the terms of any regulations in force regarding the granting of employment permits.

Section 12 outlines the conditions for refusal to grant an employment permit and the procedures to be applied when an application has been refused. Section 13 provides for review procedures in the case of a decision to refuse to grant an employment permit under section 12. Section 14 deals with the making of regulations governing the granting and renewal of employment permits, including limiting the number of permits granted, the categories of employment and qualifications or skills and the period covered by the permit. This section together with section 15 enables the Minister to monitor and adjust the employment permits system in line with prevailing economic conditions.

Section 15 specifies the criteria that must be observed when making regulations under section 14. These criteria relate to economic and social development and competitiveness in the State.

Section 16 lays down the conditions under which the Minister may revoke an employment permit and sets out the conditions that determine at what stage the revocation will take place. Section 17 provides the conditions under which a decision to revoke an employment permit may be submitted to the Minister for review. If the decision to revoke an employment permit is cancelled, the period for which the permit ceased to be valid is disregarded.

Sections 18 and 19 describe various misuses of employment permits that are prohibited and provide that persons in contradiction of these provisions are guilty of an offence. Such misuses include forgery and fraudulent use or alteration of employment permits, or illegal transfer of permits. Section 20 provides for the renewal of employment permits in various circumstances. A significant aspect of this section is its provision to allow the renewal by regulation of permits of unlimited duration. This in effect allows the provision of permanent residency for the foreign nationals concerned. Applicants must confirm they have complied with the terms of the permit and of this Act up to the point of application for renewal, if deemed necessary. As is the present practice, it is not necessary for them to undertake a labour market test to ensure the skills deemed necessary for the employment cannot be sourced locally. Section 21 allows for the cessation and reinstatement of employment permits in line with orders made under the Immigration Act 1999.

Section 22 provides for the appointment and conditions of officers authorised for the purposes of the Act. In practice, the Garda National Immigration Bureau enforces the law on illegal working. The labour inspectorate of my Department has responsibility for the monitoring and enforcement of the rights, protections and entitlements under the employment protection legislation.

Section 23 provides additional statutory protection for migrant workers, which include the prohibition on employers either deducting recruitment expenses from remuneration or from retaining workers' personal documents, including passports. Any employer or person acting on his or her behalf, who contravenes any of the provisions of this section, is guilty of an offence.

Section 24 provides for the circumstances pertaining to the surrender of an employment permit. The holder is obliged to return the permit to my Department within four weeks of the date the employment ceased. Section 25 relates to the provision of false or misleading information, which is an offence. Section 26 was introduced on Committee Stage in the Dáil. It prohibits an employer penalising an employee for making a complaint to a member of the Garda Síochána or the Minister that a provision of the Act of 2003 or this Act is not being complied with, giving evidence in any proceedings under the Act of 2003 or this Act, or giving notice of his or her intention to do any of these things.

Section 27 obliges employers to retain, make available and furnish to an authorised officer if requested, books, records and accounts concerning a foreign national employee. A person who contravenes this section is guilty of an offence.

Section 28 provides for the establishment and maintenance of a register of employment permits granted under the Act. This information is already recorded by my Department. Sections 29 and 30 enable the Minister to make regulations to govern the procedures with regard to the application and renewal of an employment permit and on other issues referred to in the Act. Section 30 provides for the laying before the Houses of the Oireachtas of regulations made under section 14. These sections deal primarily with administrative matters.

Section 31 provides for the serving of notices and their requirements. Section 32 provides for penalties and proceedings with regard to offences incurred under this Act. On conviction for an offence under this Act, a person may be liable for a fine from €5,000 up to €50,000 and-or imprisonment for a period from 12 months up to five years. Section 33 qualifies section 32 by setting out a standard provision on offences by corporate bodies and places responsibility for such offences on individuals where appropriate.

Section 34 was introduced on Committee Stage in the Dáil and has the effect that if an immigration officer or an authorised officer under this Act observes a person performing a task consistent with the person being employed in that workplace, then unless the contrary can be proved, that person is deemed to be so employed. Section 35 was also introduced on Committee Stage. It provides for the giving of evidence through a live television link in any proceedings for an offence under the Act.

Sections 36 to 41 provide for the delegation of certain functions to officers, data exchange with other Departments, transitional arrangements for permits currently in force, deletes the definition of non-national and substitutes foreign national in the 2003 Act, provides sanction for the expenditure incurred in the implementation of this Act and the preliminaries common to all legislation.

By means of Schedule 1, the Minister may refuse to grant an employment permit if an offence is committed under any of the Acts listed in this Schedule. Schedule 2 permits an employee to complain to a rights commissioner regarding breaches of this Act and the 2003 Act.

I commend the legislation to the House. It is balanced and strategic and is particularly important in terms of the development of the Irish economy. For the first time it puts on a statutory basis a framework for modern economic migration policy. A constructive debate was held on the legislation in the other House and the Bill was amended in accordance with a number of the wishes of Dáil Members. It therefore arrives in this House as a stronger, enhanced Bill. I look forward to the debate which will now ensue.