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Dáil Éireann debate -
Wednesday, 7 Jun 2000

Vol. 520 No. 4

Priority Questions. - Tourism Employment.

John Perry

Question:

18 Mr. Perry asked the Minister for Tourism, Sport and Recreation his views on whether the labour shortage within the tourism industry is hindering development and quality of service; if his attention has been drawn to the fact of the diminishing pool of potential employees among the long-term unemployed; and the plans he has to promote work permits to non-EU nationals within the tourism industry. [16106/00]

I am aware that the tourism industry, with a number of other sectors, is at present facing difficulties in recruiting staff due to the general tightening in the labour market. I am particularly conscious that sustained labour shortages and high turnover of staff, unless addressed by the industry, could adversely affect the development of the sector and quality of service on offer. In 60% of hotels and 80% of restaurants there is no training programme in place. It is estimated that if the number of non-Irish employees increased to 25%, especially in the front of house area, from the current level of 10%, the céad míle fáilte could be at risk.

In reply to a similar question from the Deputy last April, I referred to a report which was published by CERT last year, entitled "Hospitality 2000", which quantified the expected skills requirements facing the industry up to the year 2005. This report highlighted the two major challenges facing the industry – the recruitment of new entrants and the retention and development of existing staff.

CERT is continuing to work with industry partners to address the challenges set out in the report. Implementation of the recommendations will require the industry to commit additional resources to develop and retain valuable staff and to find ways to achieve excellence and improve productivity with the same or fewer staff.

CERT is also continuing to develop new programmes to encourage people into the industry. Innovative pilot programmes have been launched targeting women wishing to return to paid employment and the long-term unemployed. Each programme has been designed to meet the particular needs of the participants.

Additional Information.In the case of women interested in returning to paid employment, the programme is operated on a part-time basis to tie in with family responsibilities and it is envisaged that local hotels and restaurants will also offer flexible hours in a bid to attract such potential workers. I understand from CERT that the pilot programme initiated last year has been very successful and, as a result, it is being expanded throughout this year. CERT expects that up to 500 women will receive training in 15 centres throughout the country.

Programmes for the long-term unemployed have been established by CERT in Ballymun, Clondalkin and Merchant's Quay – traditional unemployment black spots – in an effort to make it as easy as possible for people to avail of training and to enter the tourism industry subsequently. All of the projects have been developed in conjunction with local employers and area partnerships and it is expected that all participants will have job offers on completion of training. Over 50% of participants on these special programmes for the long-term unemployed are women. Feasibility studies are being conducted by CERT for the possible establishment of similar programmes in Sligo, Galway and Waterford.

CERT has also increased its efforts to recruit people for its traditional courses for the unemployed but accept that potential recruitment in this category is showing signs of decline due to the tightening labour market. To promote careers in the industry among this group, CERT launched a travelling "roadshow" specifically aimed at adults. An information unit, advertised through local radio and newspapers, visited 15 towns in November and December last year promoting information on elementary courses and conducting walk-in interviews. It is planned to repeat this exercise during this year.

Under the new national development plan, my Department will continue to work closely with CERT to refine its activities in the future and to further develop the measures to be taken to help address the requirements of the industry in an increasingly competitive labour market.

In a separate effort to boost recruitment levels, tourism employers have participated in recruitment fairs in Wales and Scotland which have proved very successful in attracting staff to Ireland. They are due to participate further in focused recruitment in England, France, Spain, Sweden, Finland and Greece. Irish participation in such fairs is co-ordinated by FÁS, which welcomes employer participation. The Irish Hotels Federation, Irish hotel groups and individual hotels are also participating in EURES, the European employment service, to help satisfy labour supply in the hospitality sector.

While I have no specific plans to arrange for the promotion of work permits for non-EU nationals, a number of private sector recruitment agencies are actively engaged in recruiting workers from overseas for employment in the hospitality industry.

The Tánaiste and Minister for Enterprise, Trade and Employment has indicated that her Department is prepared to issue work permits for the employment of non-European economic area nationals by Irish employers in the tourism industry where the employers can demonstrate that they have made every reasonable effort to recruit Irish or other EEA nationals for the positions concerned without success. There are also, of course, immigration and labour law requirements to be met in such cases.

Does the Minister agree that there is a crisis in the hotel industry? Will he consider increasing the level of training within the industry and offer a double tax free allowance to help employers hold on to staff? Does he agree that it is taking too long for visas to be granted? There is a pool of people in Europe who would be anxious to work in the industry.

CERT has facilitated and encouraged the entire industry to conduct its own training. I mentioned that 60% of hotels and 80% of restaurants have no training programme. The State, through CERT, will continue to do all it can in the training area but the industry must also conduct its own training because the economy is doing well and more people are coming here. The two most important words in this area are recruit ment and retention and the industry must realise that.

There are problems but they are not confined to this sector. We are aware of them and will monitor them but the industry itself must realise the necessity of training.

Will the Minister give an incentive to employers? They cannot deal with the training element at present because they are under such pressure. Does the Minister agree that CERT, while it has done an outstanding job, is unable to grow at the same rate as the industry, which has accelerated at an unprecedented rate, with 45 hotels opening in the last 18 months?

In recent years CERT has focused on the labour problem but the industry must also get on top of the labour shortage problem. A number of initiatives have been put in place by the State to incentivise the area so more people will enter the tourism and hospitality industry. These initiatives included the national tourism careers roadshow, school talks, exhibitions, guidance counselling, information brochures, application forms, advertising in national newspapers and on radio and television, courses for the unemployed and return to work programmes. There was a £1 million area based response scheme for the long-term unemployed. Those are all incentives to get people back into the workforce and to enter the tourism industry. It is not up to the State to offer any more incentives. If tourism is to continue growing at such a rate, the industry will have to put more into it.

Does the Minister agree that the CERT element of training is confined to certain proprietors within the industry and that the new, emerging market cannot avail of CERT services because, in some areas, it is a closed club?

The last incentive set out to attract people, particularly women who had reared their children or who had previously worked in the voluntary sector, back into the workforce We opened 15 areas throughout the State, researched the needs of the industry in those areas and trained people in accordance with those needs. Those areas may not be fully aware of that work yet but the schemes are in operation and have been very successful in bringing people back into work.

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