Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 156: To ask the Minister for Enterprise, Trade and Employment the actions he intends to take to deal with phony subcontracting in the construction sector which is playing a role in undermining existing employment pay and conditions. [4112/06]

Tony Killeen (Clare, Fianna Fail)
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The labour inspectorate of the Department is responsible for monitoring certain employment conditions for all categories of workers in Ireland, including immigrant workers. To effectively exercise their powers when checking or pursuing possible non-compliance with employment rights obligations, inspectors require clarity around the employer-employee relationship in order that relevant provisions of the legislation can be applied. The phenomenon of bogus self-employment-bogus sub-contracting can frustrate that process.

In the construction industry, the recent significant Labour Court decision relating to the registered employment agreement in this area is notable. In this case, the employer maintained that two workers were employed as self-employed sub-contractors and accordingly not covered by the Construction Industry REA. The court concluded in this case that the workers were covered by the REA. In its consideration of the matter the Labour Court was guided by a 2005 High Court case, which found that the definition of a "worker" in the 1990 Industrial Relations Act is wide enough to include an individual sub-contractor.

The imminent discussions on a new social partnership agreement will include issues relating to a more effective compliance model and the related organisational aspects that might arise as a consequence. As a particular topic it is likely that the question of bogus self-employment-bogus sub-contracting will be considered in that context.

The Government is not about reducing the high employment standards that we have attained, rather, it is fully committed to working with the social partners to not only maintain but build upon and improve the situation of those at work, and, in the context of social partnership, it has every confidence that agreement will be reached on all outstanding matters to the satisfaction of all parties concerned.