Speeches
Private Members Business Services Directive Speech in Dáil
Fiona O’Malley T.D.
Private Member’s Motion:
Services Directive
Dáil Éireann
26 th January 2006
In the few minutes I have I would like to make two points. First in direct response to the Technical Group’s motion, and second on the wider work permits issue raised recently. In particular, in reply to the latest proposal from the Labour Party.
Addressing the Opposition motion, I agree that services are crucial to the European internal market. Accounting for between 60 and 70% of economic activity in the European Union of 25 Member States. Equally, I support the proposition that we need to promote social solidarity as a core value between EU citizens- that’s why I find Labour’s call for the Government to roll back on it’s decision to allow all citizens of the Europe of 25 equality of status as Europeans, so thoroughly offensive.
The Services Directive is about facilitating opportunity. Easing the way business is conducted in the European market where bureaucracy and red tape have impeded and hampered the ease of access to a market of 450 million people.
Ireland has thrived under the EU principles of the free movement of goods and people. Equally, the free movement of services will provide for the island of Ireland enormous opportunities. As the Minister pointed out last night, as an island nation where we export 85% of all we produce, we are dependent on trade. Contributions last night failed to address the problems that the services directive is designed to address.
The Services Directive is good for Irish business, especially SMEs. It is pro consumer. It will increase consumer confidence in cross border services. I hope Members Opposite support these efforts. If they do, perhaps they might have indicated that support in their motion.
Further, is the original’s motion reference to Union fears about labour standards and the so-called ‘country of origin’ principle. Again, the motion neglects to mention the concern that is shared and expressed by the Government on this issue.
Yes, Ireland is broadly supportive of the country of origin principle. BUT the support of Progressive Democrats and the Government is subject to further detailed technical work on its application. Lets be clear: a lot more work remains to be done on all aspects of Directive before it is ready for adoption. The Opposition seem, deliberately or otherwise, to have ignored this clearly stated position.
Last night the Minister issued a challenge to the House to demonstrate that the services directive if implemented would legitimise what occurred with the GAMA workers. This challenge was met with hushed silence. As he pointed out these issues happened with out any services directive.
A welcome but modest level of honesty is creeping into the debate finally. An article in the Sunday Business Post last weekend, drew union acknowledgment that the proposed services directive, incorporating the country of origin principle, expressly does not allow for a situation where, for example, Latvians can be paid Latvian wages for working in Ireland.
The view has been clearly expressed that European law and Irish law - the Posting of Workers Directive and the Protection of Employees Act - already prohibit such practice.
The Opposition refer to well-founded fears that the Services Directive would be used by some employers to undermine established rates of pay, and safe and reasonable working conditions. No consideration is given however to Ireland’s comprehensive body of employment rights legislation, which protects employees against arbitrary behaviour by employers. Including health and safety.
The Opposition, and the Labour Party in particular have the brass neck to lecture people particular the Progressive Democrats on issues such as the minimum wage. It will no doubt pain them to be reminded that the Rainbow Government’s Minister for Enterprise and Employment Richard Bruton and Minister of State Pat Rabbitte sat idly - whilst their successor, the Tánaiste was the one to act and introduce a National Minimum Wage for the first time in Ireland. Members opposite are not in a position to lecture anyone on this issue.
Fears are expressed about downward pressure on wages as a result of the Directive. This is due to the difference between the average industrial wage in Ireland, about €30,000, and annualised rate of the minimum wage. A two-fold difference approximately. Again the Opposition’s lack of understanding is evident. As it stands without the Directive, anyone can set up a business in Ireland and offer to pay workers the national minimum wage. Reports indicate that very few people would actually work under such conditions. (For any significant length of time at least). In reality, employers in Ireland find themselves having to pay higher rather than lower rates.
The general thrust of the Technical Group’s motion is that the Directive would lead to exploitation or social dumping.
It is as simple as this: If it would, the Directive would not be supported by the Progressive Democrats, or the Government.
End of story.
My final point is on the recent wider debate. Firstly, there has been an unfortunate use of language. (The emergence of a “look after the natives” view). In the past, Irish people have faced “Irish need not apply” signs abroad. I hope no-one is suggesting that “Only Irish need apply” signs should be displayed in Ireland today?
The Labour Party have mentioned the imposition of work permits on EU workers as a solution to fears about lower pay and conditions. As my Party colleague has pointed out, this illustrates “questionable political judgement, little or no grasp of economics and wilful ignorance of European law”.
Yes, there is a general concern about pay and conditions. This was reflected in a recent opinion poll. But the root of the concern is that foreign workers are willing to work for lesser pay and conditions than Irish workers, thus “replacing” or “displacing” them. The Labour must Party must explain how exactly the imposition of work permits on migrant workers would effectively address this issue?
To the extent that such a problem exists - remember unemployment figures show that we are at full employment - are the Labour Party suggesting that a work permit should state that a migrant worker is not permitted to work for the minimum wage? That they are not permitted to tender for work at a price lower than someone else? Lower than an Irish person?
The Labour Party policies are suspected of being a threat to Ireland’s continued economic prosperity. Their recent proposals cement that view. The Irish economy has thrived, and has needed the great work of migrant workers to do so. Research indicates that there will be a skills shortage of 30,000 workers per year over the coming decade.
The Labour Party are adding to their reputation for being a threat to our economic progress by seeking to restrict the very resource Ireland needs to sustain and re-enforce our economic prosperity.