Gerard Craughwell (Independent) | Oireachtas source

The Tánaiste is very welcome to the House. Listening to the conversation so far this afternoon brings back memories of my first job in the Castle Inn in Galway, which is now long gone.At the age of 13, my wages were £2 and my chances each week. Those chances were how much I could earn in tips, and it was necessary to work myself to the bone to ensure that I got the maximum for the night. This Bill is welcome. Before I get into the legislation itself, I thank former Senator Trevor Ó Clochartaigh and Senator Gavan who introduced it. Senator Doherty was probably the finest Minister for Social Protection that we had at the start of this pandemic. That is not to take away from the current Minister. When then Deputy Doherty was the Minister, however, she certainly grabbed the nation’s spirit in the way in which she took on the issues which faced families that were in real stress at the time.

I approached the Tánaiste some years ago about class K PRSI contributions and he immediately acted on the issue for city and county councillors and changed them to class S contributions instead. It is regrettable that we did not do that for sitting Members of this House. Some who lost their seats in the last election have suffered real poverty because of not having social protection contributions.

Returning to the Bill, tipping is an important social act. It is the way in which we can acknowledge the excellence of those who serve and look after us. It motivates people to work that little bit harder and, very often, waiting staff and people working in garages, or wherever, go beyond the ordinary to deliver the best possible service. Workers will welcome the clarity that this legislation on tips will bring. Tips are a crucial part of many people’s earnings. Senator Doherty and other speakers have made that point.

The bottom line here is that wages tend to be fairly poor in the service industry but tips make the difference. Workers who work hard are entitled to their tips. Covid-19 has greatly affected employers and employees in the hospitality and tourism industry. In fairness to the Government of which the Tánaiste is a member, it has worked hard to ensure that it supported those industries through the worst of times. Generally speaking, the public are very grateful for what was done. In years to come, history will reward the Tánaiste for the work done. During the time he was running a temporary or skeleton Government between the election and the formation of this Government, he took some brave decisions and I acknowledge that.

This legislation is well timed as the hospitality, transport and tourism sectors are returning. I hope it will entice workers to go back into those sectors. On a recent trip to my home town in Galway, I noticed the difficulty in finding chefs. Many of them left the industry during the pandemic and they have not returned. I hope we will now see some of them return to the industry. This brings me to the subject of the distribution of tips. It is important that backroom staff are looked after as well as those out front of house. My colleague, Senator McDowell, said to me the other day that if someone serves him well and he wants to hand him or her €20, then he does not want that person to have to hand in that tip anywhere. He wants to be able to give the €20 to him or her. That type of context is provided for in this legislation and that is a good thing.

Turning to the issue of electronic payments, it would be great if we could guarantee that when tips are paid and distributed to people in this way that they will at no stage ever form part of PAYE, USC or PRSI contributions. I agree with Senator Doherty about the service charge issue, and the Tánaiste will investigate this issue, judging from what he said. When employees come together to look at their tips, it is important that they explore a fair distribution of that money among themselves. It is not fair, for example, if employees on permanent contracts take all the tips and the casually-employed people do not get a share. This aspect must be negotiated by the employees themselves.

This Bill will provide a healthier and fairer working environment. I welcome almost everything in the legislation. We may have one or two small amendments as we consider it. From the employers' standpoint, I would like to see a way in which we could audit tips paid electronically to ensure they are all being transferred to the employees. I do not know if such a measure would fit into the legislation now, but I will take the Tánaiste’s direction on this point.

I am delighted to see that the Workplace Relations Commission, WRC, is being involved in this legislation. From my experience in the trade union movement, however, and I am sure other speakers will agree with me, the WRC is already overburdened. If we are going to ask that body to be a party to this legislation, then it should be provided with the resources it will need to adjudicate in this context.

In my two interactions with the Tánaiste here, and I think we have only interacted twice in this House regarding legislation, he has shown that he is always willing to listen. This is a good move on his part. I compliment him on the employment figures, which are looking good, and the economy looks like it could come back fairly strong in the months to come. I congratulate the Tánaiste and the Government on that. The Tánaiste should not worry, though, because a chance will come in future for me to have a lash at him for something else. Credit must be given where credit is due, however. I thank the Tánaiste for coming to the House.