Deirdre Clune (Fine Gael) | Oireachtas source

I am glad to have an opportunity to contribute to the debate on the Bill. As the Minister has said, this is a short technical Bill but a very important one. He has outlined the reasons for the Government's decision to allow Croatian nationals to come here after 1 July to take up employment. I have read the results of the Forfás study. I am sure everyone will understand that there is unlikely to be a flood of Croatian nationals seeking to take up employment here. I wish we could give a broad and more magnanimous welcome to Croatia. We must consider the bigger picture, the Single Market, and realise we are all now one united family. We should acknowledge the fact that Croatia is the 28th member state to join. Croatia is important politically and for many other reasons due to its location in the Mediterranean, Balkan and eastern European areas.

Forfás examined the potential impact on the Irish labour market. Allowing a person to be self-employed and not an employee would increase the chance of people falling outside of the tax net. It is important that people would be allowed to work here because they have been allowed to set up a business or be self-employed, and therefore this decision would be important in an effort to avoid them falling outside of the tax net.

The Government's decision and the legislation are important. Under the treaty of accession, a number of options are open to the Government. For a two-year period, member states can choose to restrict the rights of Croatians to work in particular sectors. They can review those arrangements after two years or to have a transitional arrangement that will end after five years. It may be extended for a further two years in those member states where an arrangement is being ended. The Government has decided to allow Croatians to seek employment immediately. As the Minister has outlined, we can expect very few individuals to come here.

Croatia is the second former member of the Republic of Yugoslavia to join the EU. That is important when one considers the principles that surrounded the original reason to establish the EU, which was peace for all of the people in the European Union.

Croatia is an important location and will play an important role in the EU. Croatia has stated its goal is to have all of its neighbours join the EU. I know that Croatia is eager to engage with its neighbours to promote membership.

Croatia is located on the Mediterranean and in the central European and Balkan region. Croatia has two very important deep sea ports, particularly for countries such as Hungary and Slovakia which do not have access to the sea. Croatia has a strategic location, and its engagement with its neighbours will be very important.

Croatia reminds us of our history and position before we joined the EU. Croatia did well up until 2008 but, like Ireland, it has suffered from the economic downturn.

Its population is very similar to that of Ireland, its unemployment rate is 18% and its youth unemployment rate is particularly difficult, given that one in two of the under 25s is unemployed there and the financial crisis has hit Croatia. Approximately 66% of the people in Croatia wanted to join the European Union and while that is a particularly low figure, it nevertheless is a positive majority.

I have visited Croatia and was particularly interested to read that approximately one third of Croatia is part of Natura 2000, the European Union standards to protect biodiversity that were established under the birds and habitats directives. This will be important, as the European Union tries to protect its special areas of conservation. When one thinks of the raised bogs and the debate on that issue, Ireland has a lot of experience in this regard and people here know well the value of special areas of conservation and natural heritage areas, as well as the value of support we received from the European Union in establishing such areas and ensuring they are protected. In daily debate, one forgets the benefits of joining the European Union and what it brings to our country but the fact that one third of the landmass of Croatia will now be under Natura 2000 is highly positive.

Croatia will benefit from Structural Funds and is due to gain approximately €8 billion between now and the year 2020. Members can recall and can see all around them the value and benefits of Structural Funds, in terms of investment in road, sewage and communications infrastructure. All Members are familiar with them and it is interesting to consider Croatia joining on 1 July in the knowledge that its future will be positive. It already has benefited from much inward investment, particularly from Austria, France, Germany and the Netherlands, and undoubtedly will continue to so do. However, the country has weaknesses, which European Union membership will help it to overcome. It has a poor climate for private investment, too big a government and a public services sector that is too large, as well as much red tape. These issues are all familiar to a small country such as Ireland with a similar population. It does not have sufficient investment in research and development or in innovation. It must modernise its labour market and has an ageing population, as well as a shrinking labour market and low rates of female participation. If one considers a brief on the Croatian economy, these are the headlines. While Ireland also has had such headlines, Members are aware of the support of the European Union, not necessarily simply in terms of financial support but with regard to mentoring, driving and ensuring the directives that are initiated across the European Union will be implemented in Europe.

This is a positive development and while Ireland's Presidency will finish just as Croatia is joining, it is important because the last time Ireland held the Presidency was when Croatia applied to join the European Union. Consequently, there has been a strong relationship between the two countries. I reiterate the make-up of the two states is very similar and I am sure the passage of this legislation will mark the beginning of a fruitful relationship with the 28th country to join the European Union.