Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I am very pleased to have the opportunity to introduce the Bill in this House and I look forward to our discussions here today. The Bill makes provision for the Government's decision on 30 April 2013 to permit access to the Irish labour market for nationals of Croatia upon its accession to the EU from 1 July 2013.

I propose first to summarise the background and context for the Bill. I will then discuss the primary objectives of the Bill and conclude by briefly outlining the sections.

On 9 December 2011, Croatia signed the Treaty of Accession to become the European Union's 28th member state. Ireland signed the Instrument of Ratification for the Croatian Accession Treaty on 21 September 2012. The ratification process, by the parliaments of all 27 EU member states, is expected to be concluded by the end of June 2013. Therefore, entry into force and accession of Croatia to the EU is expected to take place on 1 July 2013.

At its meeting on 30 April 2013, the Government considered the EU accession of Croatia. Based on the Forfás analysis and other information available to my Department, the Government agreed to permit access to the Irish labour market for nationals of Croatia upon its accession to the EU from 1 July 2013. The decision reflects the low likelihood that Croatia's entry to the EU could have a distorting impact on the Irish labour market. The Government agreed, therefore, that transitional arrangements should not be applied in the case of Croatian nationals seeking to work in Ireland following Croatia's accession to the EU.

The Government took a number of factors into account when making its decision. For example, it is highly unlikely that significant numbers of Croatians wish to migrate to Irelandgiven that Ireland's current economic status presents a very weak pull factor for Croatians. International studies also shows that migration is heavily influenced by existing migrant populations
and established social networks in the destination country. There is not a sufficient population of Croatians in Ireland at present to create an attracting factor. Of Croatians living abroad in European Union countries, Ireland constitutes just 0.2% of all Croatians living outside of Croatia. There is a very low propensity for Croatians to emigrate. When they do, they tend to emigrate to neighbouring European countries or North America. The size of Croatia's labour force is relatively smallwith a total labour force of 1.78 million and some 350,000 people in the 25-34 age group, which is generally the most mobile demographic of a country's population. Ireland's labour market, in line with EU obligations, is already open to an EU workforce of 229 million.

The Government's decision pertains only to employment. Croatians would, in any event, enjoy certain rights afforded to all EU citizens from 1 July and would, therefore, be able to reside in Ireland subject to the residence directive. Such nationals will be able to study, work as self-employed persons or establish businesses here. Applying restrictions to employment when it is possible work as a self-employed person can increase the potential for undeclared work.

Experience suggests that opening access to the Irish labour market may not have a significant impact on the State's services. The experience in respect of Bulgaria, a country with a labour market twice the size of Croatia and to which Ireland gave full access to its labour market in 2012, suggests that only a modest increase arose in respect of personal public service, PPS, number registrations. That could not be described as having a distorting impact on the Irish labour market.

The rate of employment permit grants to nationals of Croatia has been approximately 12 per year. At a practical level, were
Ireland to restrict access to the labour market for nationals of Croatia, a separate employment permit regime would have to be maintained to manage approximately 12 employment grants. That would be difficult to justify.

It was also noted that Ireland has an excellent relationship with Croatia. It is important that the relationship is developed further to the benefit of both countries. Bearing in mind that Croatia applied for membership of the EU under Ireland's last Presidency of the EU, it is timely that Croatia will join the EU just after the conclusion of Ireland's Presidency of the Council of the EU. By providing full access, Ireland is continuing its policy of openness to new member states and highlights the need for continued EU solidarity.

Under section 2 of the Employment Permits Acts 2003 to 2006, a foreign national is not required to have an employment permit where he or she is entitled to be in employment in the State, pursuant to rights from the treaties governing the European Communities. Section 1 of the European Communities (Amendment) Act 2012 provides that the definition of "treaties governing the European Communities" includes the treaties as amended by the Treaty of Accession of the Republic of Croatia. However, under paragraph 2 of Annex V of that accession treaty, the entitlement of Croatian nationals to employment for the first two years post-accession must be provided either by way of national measures or measures resulting from bilateral agreements. Hence, the reason for this legislation. Therefore, a legislative amendment to the Employment Permits Act 2003 is required to exempt Croatian nationals from the requirement for an employment permit while not conferring any greater rights than those included in the treaty.

The Bill is short and technical in nature and must be enacted by 1 July 2013. I will briefly outline the content and purpose of its provisions, section by section.
Section 2(1)(a)gives Croatian nationals employment rights equivalent to other EU nationals for the first two years post-accession. Section 2(1)(b)ensures Croatian nationals have the same employment rights as other EU nationals after the first two post-accession years. Section 2(2)ensures the family members of Croatian workers have the same entitlements as the family members of other EU workers. Section 3amends the Employment Permits Act 2003 so that Croatian nationals who have equivalent EU employment rights do not need an employment permit.

I would be happy to expand on any of the provisions during the course of the debate if Senators wish to raise any particular issues. We will have an opportunity during Committee Stage to examine the Bill in detail. I look forward to hearing the contributions of Senators during the debate. I hope the House will support the passage of the Bill and assist in securing its early enactment. I commend the Bill to the House.