Vol. 547 No. 3
44 Mr. Belton asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself with the operation of the new work permit regulations for non-EU nationals; and if she will make a statement on the matter. [3604/02]
I am satisfied that the changes to the work permit regime introduced with effect from 2 January 2002 constitute an appropriate response to the changed labour market situation resulting from the general slowdown in economies worldwide, the aftermath of the events of 11 September and their impact on the Irish economy. The new procedures are designed to verify that employers are making all reasonable efforts to recruit locally or through the wider EEA market before looking to employ non-EEA nationals by obliging employers to register job vacancies with FÁS before making a work permit application. These new arrangements came into operation on 2 January 2002, and as notified vacancies can take some four to six weeks to process through FÁS, it is too early yet to tell how effective the new system is in sourcing Irish-EEA staff.
I will monitor closely the implementation of the new procedures in the next few months. Any further proposals for change in this area will be informed by operational experience in that regard.
A few minutes ago the issue of price increases following the introduction of the euro was discussed. The Minister has increased the work permit fee from £125 to €400 from 2 January. Will she explain the reason for this increase to the House? Those paying the fee are employers. We heard earlier – even though the Minister of State does not appear to be fully aware of the position – about the pressures they are under to renew their insurance. Now they are being hit again. Will the Minister justify the increase of 150% in the work permit fee?
Exempt from the need to register with FÁS are the medical, construction and high-tech sectors. Will the Minister consider adding to the list the horse racing industry which offers a specialised form of employment and is a worldwide industry? I have received representations from persons involved in the industry which suggest work permits are not being renewed.
Strong representations have been made by many Deputies on behalf of the horse racing industry. In recent weeks I received more representations about the industry than any other sector. It is, therefore, very well represented in the House. I am not considering expanding the categories covered by the working visa to the industry. Applications from the sector will be examined on a case by case basis. Permits are being renewed where there is a genuine need and employees cannot be found locally.
With regard to the increase in the permit fee, some sources recommended raising it to €3,000.
Who made that recommendation?
A number of people, including officials.
The Minister has responsibility for the issue.
Permit fees are much higher in many other countries. The purpose of the increase is to try to make the process more difficult in order that employers will seek local labour. Some have suggested that because employers were not paying market rates, they were finding it difficult to recruit local labour, either in Ireland or the wider European economic area.
The fee has not been increased for a considerable time. The processing procedure is huge becausemany civil servants are needed to make sure the data given by employers are correct. This is necessary because examples arose of people being brought here, who were not treated properly. We go to considerable lengths to ensure the employees concerned are paid the going rate and have the same conditions as employees from Ireland, other European Union member states and the EEA.
The process consumes a considerable amount of manpower. Officials in my Department have been working Saturdays and Sundays processing applications which has created a huge overtime cost. In Christmas week alone we received almost 2,000 applications – the exact figure was 1,920. The purpose of the new regime is to make the process more difficult because the first priority of a Minister or Government is to ensure local people can find employment.
At Question Time Deputy Noonan referred to the recent increase in unemployment from 3.6% to 4.3%. We introduced the stricter regime for work permits in response. When I took office four years ago we were granting about 2,000 to 2,500 work permits a year. Last year we granted something in the order of 35,000.
Employers do not always require people for the whole year. For example, there were cases of people being recruited for particularly busy periods such as Christmas. Therefore, the charges for permits are skewed month by month, in order that the fee for a person coming here for a five month period will be €150 as it would be unfair to charge €400. We gave much thought to the increase, which is not related to the euro. I was not translating £125 into €400.
The facts speak for themselves, it happened at the same time. There is a great deal of disquiet in the catering business concerning the fact that CERT brought people here without a work permit and allowed them to work for several months. Will the Minister comment on this?
Nobody is entitled to bring in people from outside the EEA area without a work permit. While CERT is not part of my ministerial responsibilities, I am aware that several matters have arisen which are being examined.
