Brendan Howlin (Wexford, Labour)
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Question 113: To ask the Minister for Enterprise, Trade and Employment his views, in view of the stark difference in the number of work permits issued to Romanian and Bulgarian nationals as against the number of PPS numbers issued to Romanian and Bulgarian nationals in 2007, on whether there is a significant problem of so-called false contracting being used to exploit such workers; the steps he is taking to ensure that workers are not exploited through incorrect use of contracts to avoid employers' duties and responsibilities; and if he will make a statement on the matter. [8328/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Nationals of Romania and Bulgaria may only come to Ireland to be employed by an employer if they are the subject of an employment permit application. For the first two months of this year, 11 new employment permits were issued in respect of Romanian nationals, and 2 new employment permits in respect of Bulgarian nationals.

I understand that the Department of Social and Family Affairs issued 4,877 PPS numbers up to 23rd February, 2007 to Romanian nationals and 199 to Bulgarian nationals.

Under EU rules nationals of Romania and Bulgaria may come to Ireland and set up a business here and be self-employed. However, the self-employment must be genuine.

A major package of measures has been agreed by the parties to Towards 2016, the new Social Partnership Agreement, to provide for enhanced public confidence in the system of compliance. New legislation will be published this year which will empower the Labour Inspectorate to join with the Department of Social and Family Affairs and the Revenue Commissioners to work together in Joint Investigation Units. Such units will have a particular focus on the employment status of workers. The National Employment Rights Authority, which has already been established on an interim basis, is currently meeting with the Department of Social and Family Affairs and the Revenue Commissioners with a view to the early establishment and operation of Joint Investigation Units within existing legal and administrative frameworks.

I am informed by the Department of Social and Family Affairs and the Revenue Commissioners that attention is paid by them to the matter of bogus self-employment in the course of their compliance activities and appropriate action taken. Complaints in relation to bogus self-employment should be referred to all or any of the following — the Labour Inspectorate of the National Employment Rights Authority, the Department of Social and Family Affairs or the Revenue Commissioners.

New legislation will be published this year that will provide for enhanced employment rights measures including the establishment of the National Employment Rights Authority. Providing for greater clarity in the application of employment rights legislation to employees and the self-employed will be considered in the context of drawing up that legislation.

The package of measures provided for under Towards 2016 will be supported by enhanced employment rights promotional and educational efforts. The Social Partners and other organisations such as the Department of Social and Family Affairs and the Revenue Commissioners will be invited to bring their knowledge and networks to bear on the design and delivery of this education and awareness programme which, it is anticipated, will also address the issues associated with bogus self-employment.

Towards 2016 also includes a number of other specific commitments in relation to employment status and in relation to the "Hidden Economy". The Government and social partners have agreed under the Towards 2016 to review the application of the existing Code of Practice on employee status with a view to more effective implementation. My Department will be actively involved in that review. In addition, the Government and the social partners agreed under the Towards 2016 to continue and expand the Hidden Economy Working Group. The group, which comprises representatives of Office of the Revenue Commissioners, Department of Social and Family Affairs, ICTU, IBEC, SFA, CIF and, since the ratification of the Social Partnership Agreement, my own Department and the National Employment Rights Authority, has met on two occasions to date.