Kathleen Lynch (Cork North Central, Labour)
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Question 66: To ask the Minister for Enterprise, Trade and Employment the number of inspections carried out by the Labour Inspectorate during 2007; the way this compares with those in 2006; the reason for the significant decline in the number of inspections carried out in the first nine months of 2007 as compared to the first nine months of 2006; and if he will make a statement on the matter. [4065/08]

Billy Kelleher (Cork North Central, Fianna Fail)
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The number of employment rights inspections/visits undertaken in 2007 by the Inspection Services of the National Employment Rights Authority, or NERA, amounted to 14,413. In the year 2006, some 15,855 inspections/visits were undertaken. This represents a reduction of 9% in 2007.

Insofar as comparisons with the same period in 2006 are concerned I am advised by NERA that some 10,600 employment rights inspections/visits were undertaken in the period 1st January to 31st October, 2007. This represents a reduction of 28% in comparison to the 14,600 inspections/visits undertaken in the same period in 2006.

There are three main reasons for the reduction in the number of inspections carried out in the first nine months of 2007 compared to 2006.

Firstly, NERA Inspection Services undertook a comprehensive and extensive employment rights compliance campaign in the construction sector during June and July of 2007. The nature of the Construction Sector in terms of mobility, places of employment (headquarters and sites) and numbers of employees dictated a specific approach from NERA Inspection Services in order to optimise effectiveness. This approach was resource intensive in terms of inspector numbers, planning, intelligence gathering and liaison with the Revenue Commissioners and the Department of Social and Family Affairs in relation to joint investigations and the exchange of data. This campaign necessarily resulted in the diversion of resources for a considerable period from inspection activity in sectors that would be less demanding in terms of inspection planning, liaison and duration. However, the approach adopted for the Construction Campaign was extremely successful. Some €1.3 million was secured by NERA Inspection Services for employees arising from breaches detected.

Secondly, recruitment processes and training plans had to be put in place for the recruitment of 59 new inspectors in line with the commitment given under Towards 2016, the Social Partnership Agreement. Successful candidates were identified for the 59 additional posts and twenty new inspectors were assigned during 2007. Again, this recruitment and training was resource intensive and the influx of the 20 new inspectors within such a short timeframe required a huge commitment from existing inspectors in terms of training, mentoring and other supports and diverted resources from inspection activity during that period.

Thirdly, there has been a substantial training investment in existing inspectors. This investment will continue in 2008.

Notwithstanding the reduction to date in the number of employment rights inspections/visits compared to the same period in 2006, it should be noted that the outcomes in a number of respects are extremely positive. Firstly, over €2.5 million in arrears due to employees was recovered by NERA Inspection Services in 2007 compared to €1.4 million for 2006. Secondly, 2,353 breaches were detected by Inspection Services in 2007 compared to 2,108 for 2006. Thirdly, 28 prosecutions were initiated by Inspection Services in 2007 compared to 8 for 2006. These outcomes point to the value of the more focussed and targeted activities being undertaken by NERA in relation to employment rights promotion and compliance.