speeches

Speech on the Services Directive
26/01/2006

I welcome the opportunity to respond to the debate on this very important subject. The Government recognize that recent events such as the Irish Ferries dispute have caused people to become concerned that there might be some link between that dispute and the attempt by the European Union to create a single market in services. I wish to emphasize, yet again, on behalf of the Government that there isn’t. The Services Directive would not permit social dumping or the exploitation of workers. And it would not be supported by the Government if it did.

There is no doubt Ceann Comhairle that the broader debate on migrant workers and the growing numbers of these workers in modern Ireland overshadows our debate here today.

I believe there are two important aspects to this wider debate on migrant workers:


  1. Fears among some people that Ireland is being overcome/swamped with non-national workers and the possibility of these workers displacing their Irish counterparts.
  2. the need to protect the rights, pay and conditions of these workers.

The recent opinion poll has confirmed what many of us know, that there are concerns out there among the public on this issue. I have listened carefully to the contribution of Pat Rabbitte of the Labour Party to this debate. Sadly I have to say that he has in a reckless and opportunistic way tapped into those concerns, fuelling them to the exclusion of explaining or contextualising them. Rather that giving leadership on this issue he is, by his utterances, inciting fears among some sections of our population in relation to the perceived threat of EU migrant workers. In a reference to Polish workers who are making a substantial contribution to our economic development he reminds us that “there are 40 million or so Poles after all”, the clear message being that these Poles could come here and take away our jobs. His comments run counter to the notion of a Social Europe, a union of openness and equality that his party has supported since we joined the European Union.

I think it is most unfortunate that the leader of a Labour Party, for the first time in my memory, in the history of the Labour Party in Ireland, would pursue such a conservative, anti-European and unenlightened policy on immigration. Deputy Rabbitte bases his arguments regarding the displacement of Irish workers on anecdotal evidence. It’s a well established fact that sound public policy can never be based on foundations as flimsy as anecdotal evidence.

Comments on the issue of migrant workers, and in particular on the issue of the possible displacement of Irish workers, must be measured and accurate. As I said, there is understandable anxiety among the public concerning the potential impact of migrant workers on Irish jobs and wages. However, such concerns do not appear to be substantially grounded or to have a concrete basis in fact. On the contrary, there appears to be little evidence to warrant widespread concern. The facts are that since our employment market was opened up to migrant workers from the accession states in 2004, our unemployment rate has actually fallen.

All economic forecasts appear to agree that Ireland’s economy is strong and continuing to grow. Our employment rates are still growing at a phenomenal rate and look likely to do so for the foreseeable future. And there is growth in all areas of employment, including women returning to the workplace and the employment of older people.

The evidence available suggests that the migratory pattern of workers is directly related to work available. The numbers of migrant workers travelling to Sweden, which has a similar open policy to ours, has dramatically fallen in line with the slow down in its economic growth.

Yes there are issues we need to address in this debate:

  • The need for the government to engage with the Social Partners on the rights, pay and conditions of all workers, Irish and non-Irish, employed in this country.
  • The need to continue to enforce our employment law in a growing labour market.
  • The need to continue a policy of upskilling our workforce.

I welcome Archbishop Martin’s thoughtful contribution to this debate, a debate that will continue for some time.

I acknowledge the important data that has been compiled by the Central Statistics Office (CSO) on the numbers of migrant workers here in Ireland. Their work on the forthcoming census will be very helpful in clarifying the makeup of the population of modern Ireland.

There is much confusion surrounding this debate and its interesting to note Commissioner Vladimir Spidla’s comments in today’s Irish Times that the States that imposed restrictions on the 10 new EU states when they joined the EU in May 2004 had seen “an increase in undeclared work, bogus self-employed work, dishonest sub-contracting and other such undesirable consequences” according to preliminary conclusions of studies undertaken by the Commission.

Could I finally say to Deputy Rabbitte ‘let us conduct this debate in a measured, constructive and honest way rather than in a divisive, disingenuous and destructive manner.

Getting back to the Services Directive, it is clear from the contributions that there are concerns about this proposal – concerns that are shared by the Government. As the Minister made clear in his remarks, Ireland has sought improvements to the original proposal published by the Commission, and indeed, we still have a great many concerns that we want to see examined before we can give our support to the proposal.

The European Union is the largest market in the world. We are extremely fortunate to be in a position to participate in that market, as consumers and as service companies. The independent analyses that have been carried out on the Commission’s proposal all point to more job creation, more investment, more trade and more benefits for consumers. It is there waiting for us, if the European Union can work together to create the right framework. And the Services Directive is a framework: it is not about standards, let alone about running down standards.

The recent Enterprise Strategy Group report concluded, inter alia, that the challenge for Ireland, for the next decade, is to build competitive advantages that will sustain high living standards in the face of intense global competition. The report identified areas of opportunity that are opening up and that will play a significant role in Ireland’s economic development over the next decade. Principal amongst these is the internationally traded services sector where there are important opportunities in a range of sectors and activities where Ireland has existing expertise. Specific services sectors identified included education, healthcare and creative services, and maximizing the potential of services delivered electronically. Potential also exists in development our existing strengths and expertise in ICT, medical technologies and engineering, and building on the success of natural resources based sectors, such as tourism.

All of these sectors and activities have the potential to derive benefit from the creation of large and open EU internal market for services and to enjoy the economics of scale and competitive edge that access to a large market can deliver.

The ESG report clearly indicates that over the period to 2015, internationally traded services will become increasingly important for indigenous and foreign owned operators in Ireland and that growth in the sector will be driven amongst other things by reduced barriers to trade. Developments within the World Trade Organisation and within the European Union have resulted in a reduction in barriers and enhanced opportunities for international trade in services.

A properly constructed EU Services Directive, with all the safeguards relating to the rights of citizens, be they workers, consumers or employers, will provide the legal certainty that will allow all of us to take full advantage of the huge opportunities and advantages opened up by the creation of free movement of services between Member States.

A final word on the Directive –

Much progress has already been made on the Commission’s original proposal but the work is far from over. Moreover, the European Commission is expected to formally table amendments to its original proposal later this year. Those amendments will be considered by the Government with an open mind and in full consultation with stakeholders, with the objective of securing the best possible outcome for Ireland’s and the EU’s economic and welfare interests.
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