Jan O'Sullivan (Limerick East, Labour)
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Question 54: To ask the Minister for Enterprise, Trade and Employment the reason for the decline from 2002 in 2006, to 1750 in 2007 in the number of inspections to check that the minimum wage was being paid; if there are plans to increase the number of such inspections; and if he will make a statement on the matter. [8340/08]

Jan O'Sullivan (Limerick East, Labour)
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Question 65: To ask the Minister for Enterprise, Trade and Employment the reason for the 9% decline in the number of workplace inspections carried out by labour inspectors in 2007, compared to 2006; the plans to increase the number of such inspections; and if he will make a statement on the matter. [8339/08]

Billy Kelleher (Cork North Central, Fianna Fail)
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I propose to take Questions Nos. 54 and 65 together.

The number of inspections undertaken by NERA inspectors to check compliance in 2007 amounted to 14,425. Of these inspections no breaches were detected in 8,556 cases while breaches were detected in 2,353 cases. The number of inspections in 2006 amounted to 15,855. Of these inspections, no breaches were detected in 10,113 cases while breaches were detected in 2,108 cases.

The number of inspections undertaken by NERA inspectors to check compliance with National Minimum Wage legislation in 2007 amounted to 1,942. Of these inspections no breaches were detected in 1,750 cases while breaches were detected in 192 cases. The number of inspections in 2006 amounted to 2,002. Of these inspections, no breaches were detected in 1,898 cases while breaches were detected in 104 cases.

Insofar as comparisons with 2006 and previous years are concerned, I am advised by the National Employment Rights Authority that there are three main reasons for the reduction in the number of inspections generally carried out in 2007: 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 strong 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 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.