Dáil Éireann debate -
Tuesday, 29 Nov 2005

Vol. 611 No. 1

Adjournment of Dáil under Standing Order 31: Irish Ferries Dispute.

Mr. Hogan

I thank the Ceann Comhairle for allowing this important matter to be debated by Dáil Éireann. We are calling on the Minister for Enterprise, Trade and Employment, Deputy Martin, to intervene with Irish Ferries in order to ensure that our exports, employment standards and the continuation of social partnership are protected. I wish to share time with Deputies Perry and Kehoe.

The Fine Gael Party has watched the unfolding of events in Irish Ferries with a growing sense of disgust and horror. The company's actions have been an example of the worst type of Dickensian exploitation I have ever seen in this country. Irish Ferries is an Irish-registered subsidiary company. As such, it should be subject to the laws of this country, including legislation that protects the minimum wage and makes provision for employee protection and health and safety. It has been allowed to get away with industrial marauding as a result of a legal nonsense. This debate is not concerned with immigration, globalisation or free market economics. I believe firmly in an open market, a flexible employment atmosphere and the value of non-nationals coming to Ireland to work. This debate, rather, is about a greedy and grubby company that is intent on maximising profits. It is not just seeking a cheaper labour force; it is intent on putting in place a criminally cheap one by abusing European maritime law and exploiting Irish labour conditions.

An industrial relations infrastructure has been established in this country, which, at the very least, ensures that workers from new countries cannot be exploited and must be paid a decent wage. That legislation has protected Irish workers from having their jobs replaced by new arrivals to our shores. Europe-wide policies are required to ensure that we have proper workplace standards so that Irish employees are not dumped on the scrapheap of unemployment and replaced by workers from other member states of the European Union. It is not acceptable that Irish Ferries, for no good reason other than that it runs ships as opposed to buses or trains, does not have to obey the laws of this land.

In my opinion, it has run roughshod over 40 years of industrial diplomacy. We should be mindful that this industrial diplomacy has helped to create the conditions that fomented the Celtic tiger, from which everyone, including Irish Ferries, has benefited. The Government has been slow to come up with a solution to this problem. The Taoiseach and other members of Government have criticised Irish Ferries, by empathising with the workers and admonishing the company, but this is not enough. My colleague, Deputy Perry, in an effort to be helpful, has called within the past week or two for the Minister to seek support from his EU counterparts to have the practice of reflagging outlawed throughout the European Union. It is only by doing this that we can rid the seas and this country of the cancer of exploitation that Irish Ferries seems intent on spreading through the body politic.

The Irish people have shown their support for the European Union, time and again. This initiative must be addressed through the EU to ensure that the activities of Irish Ferries are deemed illegal, just as they have been found to be immoral by almost everybody, with the exception of the representatives of certain august bodies who should know better. The management of Irish Ferries should be obliged to remain loyal to the social partnership process. It should have been loyal to the people who helped it become profitable. I wonder whether it can count on the loyalty of the Irish people in the future. The Irish are fair-minded people. They certainly condemn indecency and dishonesty in company affairs.

I also wonder whether Irish Ferries can depend on the loyalty of exporters, importers and tourists who have been so inconvenienced during this sorry drama. Even at this late stage, I urge the company to have a change of heart. My party leader earlier called on the Taoiseach to gather the players together and resolve this problem. I acknowledge that this is easier said than done. Nonetheless, the machinery of the State, which has been deployed to best advantage to try to resolve this crisis through the Labour Court, has come up with a reasonable set of proposals, which the company stated, unilaterally, that it cannot implement. If social partnership is to be achieved to the ultimate degree, all the players concerned must be involved in the give and take process. Workers must take particular agreements on board in order to progress, as has been the case under the various national wage agreements since 1987. Equally, employers must do the same. However, when an employer such as Irish Ferries unilaterally turns down an invitation from the State's industrial relations machinery, namely, the Labour Court, to proceed with the implementation of its plans on the basis of a negotiated settlement, this is a very worrying trend and something of which we should not be proud.

The Irish Ferries dispute is encapsulated in the fact that companies are increasingly under threat in terms of their competitiveness. Irish Ferries believes that because of the stealth taxes and charges imposed in this jurisdiction, the Irish labour market is no longer appropriate to its conditions of employment. The high wage spiral and the high costs associated with this are now having rip-off and knock-on effects as regards competitiveness. At this stage, however, the threat of tear gas is the last straw as regards the ultimate response of fair-minded people in this country towards this dispute. It is an unhelpful throwback to the last century that any company should seek to protect the security of its ships by employing tear gas. That is not the essence of partnership. Neither does it assist the process which seeks to ensure that our exporting potential, as an island nation, is protected and that the employment standards derived under social partnership are in place. I ask the Minister, Deputy Martin, to take every possible opportunity to intervene. I appreciate that it is not easy to get a company such as Irish Ferries to listen. However, this debate should provide him with the necessary support to ensure that he intervenes with Irish Ferries on a continuous basis. He should also ensure at EU level that there is a co-ordinated response as regards employment standards. Flags of convenience and reflagging should not be used to promote cheap and exploited labour in this jurisdiction.

Mr. Perry

I commend Deputy Hogan on raising this important issue. This dispute will not come as a surprise to many people who take an interest in maritime matters. People may be surprised and appalled by the tactics employed by Irish Ferries. However, this crisis was entirely avoidable and the Government could have played a greater role in preventing it. Since 2002, when marine matters ceased to be represented directly at the Cabinet table, there has been an absence of any strategic focus or direction in this regard. Marine and maritime issues have become an add-on to a Department that deals with broadcasting, e-commerce, mining, energy and telecommunications. I do not doubt that if the marine had full Cabinet status in its own right, the crisis we now face could have been avoided.

I understand, for example, that proposals were advanced to the Department of Finance by the Irish Maritime Development Office, IMDO, that could have alleviated the position in which Irish Ferries found itself in the context of high costs. The IMDO received the sector's proposals about three years ago and recommended their implementation. The report has been with the Department for the past three years. Another factor is that the Government failed to reintroduce the PRSI rebate scheme, which ended in 2003. This could have been used effectively for seafarers in order to bring Ireland into line with practices in other EU countries. Under UK legislation, seafarers in international waters are effectively exempt from national insurance, which lowers the cost of employing them. If State aids had been in place for the past three years, along with benefit to seafarers, it would certainly have helped considerably. As an island nation, we have a national imperative to take a strategic approach to the establishment and maintenance of links by sea between this country and other states. The extent of our dependence on sea transport for both exports and imports is highlighted by the fact that 35% of national export capacity is threatened as a result of the difficulties at Irish Ferries. This will have a direct impact on the availability of goods and services to consumers in Ireland over the coming weeks. It indicates how important it is that this dispute is resolved immediately.

It is critical that the Government starts to take this sector of the economy seriously. We should have a strategic overview of the importance of maintaining adequate and diverse sea transport links between Ireland and our trading partners. The Farrell Grant Sparks report identified this problem and the Minister for Communications, Marine and Natural Resources knew of its content. I am very disappointed that he did not negotiate in Europe to get that exemption back in place. It may not have solved the problem, but we did not avail of that benefit although it operates in other jurisdictions. Why did the Minister not go back to Europe and reinstate a refund scheme for employer contributions of social costs — a facility that was in existence since 1997? The Government announced an extension of the scheme to November 2004, subject to EU approval, which was not sought. Why was it not sought? It is not in place at the moment. The Irish Maritime Development Office also prepared recommendations, but nothing was done about them either. The Government missed a golden opportunity when it did not avail of those two critical aspects, which could have helped to avert this major difficulty.

Mr. Kehoe

The Irish Ferries fiasco has caused serious unrest in County Wexford. Most people recognise that the Government has not been proactive on this issue. These problems have beencontinuing for the past 12 months. I do not accept that the Government's hands are collectively tied on the re-flagging issue.

I am shocked at the behaviour of the company in smuggling security men on the ships and having them change into uniform once they were at sea. I am highly critical of the Taoiseach's stance on this issue. This man has often boasted of his industrial relations skills when he was Minister for Labour. Those skills have now deserted him. Even at this late stage, I urge those involved to have a change of heart. My party leader called on the Taoiseach to gather all the players, knock heads together and to sort out this mess immediately. The company and the unions should now sit down with a blank sheet and come up with some form of agreement. The moves to replace Irish workers should be halted immediately. Following that, the unions should call a halt to their actions on board the ship and everyone should then sit down calmly and talk through the issues.

I do not want to see Irish Ferries being lost to County Wexford and to Ireland. The Government has time to sort out the mess and I call on the Minister to do so immediately.

Minister for Enterprise, Trade and Employment (Mr. Martin)

I welcome the opportunity to address the dispute at Irish Ferries: an issue which has such significant impacts for the travelling public, the workers in Irish Ferries and their families, Irish Ferries itself, exporters, importers, hauliers and many more people. It also has the potential to impact on the whole industrial relations environment, on the prospects for continued social partnership in Ireland and on the image of Ireland abroad as a stable location to invest and do business.

I welcome the withdrawal earlier this afternoon by Irish Ferries of the security staff on the Isle of Inishmore and the Ulysses ferries. This should assist the process of engagement. I hope this will lead to a more positive climate for talks in the Labour Relations Commission. This matter, which we all recognise as being of major importance, is currently with the Labour Relations Commission. The commission is working with both parties to agree an agenda to allow the parties to engage in intensive negotiations over the next week. I am appalled at the approach taken by Irish Ferries in recent weeks to the conduct of industrial relations. In particular, the Taoiseach and other members of the Government have condemned the company’s confrontational tactics which are not the way that business should be done. The orderly conduct of industrial relations depends on respect for the basic norms and for the institutions of the State, especially the Labour Court. While Labour Court recommendations are not generally binding, the fact is that they should be respected as the proper means to the resolution of disputes.

This is especially the case with the Irish Ferries dispute. The court spelt out very carefully its views on fundamental aspects of negotiation and collective agreements. It upholds the basic principle that agreements should be honoured unless there are compelling reasons to vary them. In this case, having heard comprehensive arguments from both sides, the court concluded that the company had not made out a sufficiently compelling case to justify a unilateral termination of its agreement with SIPTU. However, the court went on to state that all possibilities of re-negotiating aspects of the agreement of concern to the company had not been exhausted. It was therefore recommended that the parties resume negotiations on such changes as are necessary in order to address the commercial needs of the company. Having regard to the clear risk to the conduct of ordinary industrial relations which the court stated would otherwise arise, the Government strongly urged the parties to enter into negotiations, with an independent facilitator if necessary. The issues in dispute between SIPTU and the company could have been resolved. It may still be possible to do so, but the company's tactics have not helped.

The Minister for Communications, Marine and Natural Resources is considering an application by the company to transfer the vessels from the Irish register to the Cypriot register. He is doing so on the advice of the Attorney General and has sought further information on the strength of the relationship between Irish Ferries, the ships involved and Cyprus. The protection of employment standards is an important goal of public policy. We do not want to create a low wage economy here. In particular, we do not want to foster a social division by having jobs transformed from decent employment for Irish citizens to low pay positions targeted at migrant workers. This country has invested greatly in tackling poverty and inequality. The Government is not prepared to see it replaced by short-sighted and exploitative decisions. Ultimately, the State winds up subsidising unsustainable low paid employment through family income supplement, social services and so on.

Mr. Stagg

Tell that to Deputy Harney.

Mr. Martin

That is why I am satisfied that we have a realistic minimum wage here. The potential to re-flag in the maritime sector would appear to put the employment of seafarers beyond the minimum wage regime here. Therefore, directly comparable situations do not arise in other types of employment. However, there are issues arising from recent events which we all need to consider, including the arrangements for repayment of part of the cost of redundancy settlements to employers and the adequacy of our industrial relations framework in circumstances such as this. Furthermore, I wish to make it clear that the Government did not agree to immediate access to the Irish labour market by citizens of the new member states in order to displace Irish workers. Having said that, I recognise that commercial reality and competitive pressures will impact on employment here which is not sustainable. The best defence for all of us against these pressures is to ensure that our approach to wage bargaining reflects competitive realities, that our workers are encouraged to update their skills in line with technical progress, that our industrial relations practices foster flexibility and change in order to boost productivity, and that our support for workers who are affected by change is timely and effective.

There has been informal contact with the Irish Congress of Trade Unions following its decision to postpone the commencement of talks on a new social partnership agreement. Ministers and officials from a number of Departments, including my own, met ICTU representatives over recent weeks. The Taoiseach also met ICTU on these issues. This provided a useful opportunity to elaborate on the key issues and to ensure that there was at least a shared understanding of the difficulties.

As Deputies know, the Government has already communicated its intention to engage fully and effectively in the process of devising policies and measures which would protect employment standards and arrest a race to the bottom in terms of employment practices. I am confident a successful response to these issues can be found for our economy, where the particular characteristics, legal and otherwise, of the marine sector do not apply. I believe they are best found within the context of a social partnership agreement which continues the stability and progressive modernisation of our labour force and employment practices in order to sustain jobs and living standards.

I view with great concern the potential social implications of the displacement of workers on established conditions in favour of those willing to do the same jobs on much poorer conditions. The Taoiseach is on record in stating that we want to see greater productivity and enhanced competitiveness based on new products and services, improving staff skills, new work practices and technological innovation. We do not want to see people building competitive advantage based on poor wages, casualisation of labour, low health and safety standards or other poor compliance practices. Not only is it wrong, it is not sustainable.

It would be useful if I addressed an accusation being made by Deputy Rabbitte and others that there is some connection between the Taoiseach's recent statement as regards the scope for action by the Government and Irish Ferries' outrageous behaviour.

Mr. Stagg

He hit a nerve.

Mr. Martin

I understand the Taoiseach has already made clear to the Deputy that he was aware on the weekend before last that within trade union circles, it was expected the company would proceed in the immediate future to begin implementation of its plan. Last week's action was clearly planned in a careful and covert way and we can therefore assume it was planned long before any remarks made by the Taoiseach. Any connection between those remarks and the appalling behaviour of Irish Ferries——

Mr. Stagg

Acting like Pontius Pilate.

Mr. Martin

——is fanciful in the extreme and clearly politically mischievous.

Mr. Broughan

He gave them the green light.

Mr. Martin

The Government wants to do its best to protect Irish workers and does not seek to make party political capital out of this saga. I hope the Deputy and others, on further reflection, apply the same standard.

I will set the context for the Taoiseach's remarks. They referred to the fact that, in the unique circumstances of the law relating to the marine sector, it would not be possible to enforce Irish employment terms and conditions on re-flagged vessels.

Mr. Stagg

He told them it would be all right.

Mr. Martin

That continues to be the position.

Mr. Rabbitte

That is a misrepresentation.

Mr. Martin

The legal position is clear.

Mr. Rabbitte

That is a misrepresentation.

An Ceann Comhairle

The Deputy will have his opportunity shortly. The Minister should be allowed to speak without interruptions.

Mr. Martin

Any undertaking that seeks to exercise its right of establishment under European law in another member state cannot be prevented from so doing.

Mr. Rabbitte

That is a careful formula which misleads.

Mr. Martin

The State cannot hinder the exercise of that right.

Mr. Rabbitte

We are not asking the Minister to so do.

Mr. Martin

Otherwise, it would be in breach of its duties——

Mr. Rabbitte

He should simply prevent the re-flagging.

Mr. Martin

Deputy Rabbitte should allow me to make my contribution to the House. He, or one of his colleagues will have an opportunity to speak, as other Members have done.

Mr. Rabbitte

Very well. The Minister should proceed, although it is hard to listen to.

Mr. Martin

Otherwise, it would be in breach of its duties under the Treaty of the European Community. Once Irish Ferries satisfies the Minister that its proposed re-flagging in Cyprus is on foot of its right of establishment, the State cannot prevent the re-flagging. That is the stark reality.

Pending that re-flagging approval, Irish employment laws will continue to be enforced and at all times Irish safety laws will continue to apply to all vessels using Irish ports——

Mr. Stagg

The Government should refuse Irish Ferries and let it take the Government to court.

Mr. Martin

—— wherever they are flagged.

Mr. Rabbitte

The Government should refuse Irish Ferries and let it take the Government to court.

An Ceann Comhairle

I ask the Deputy to allow the Minister to speak without interruption. The Deputy will have 15 minutes very shortly.

Mr. Stagg

The Minister should not give in.

Mr. Martin

However, once the vessels re-flag in Cyprus it is clear, as a matter of international law, as reflected in the United Nations Convention on the Law of the Sea, that the terms and conditions of the employed seafarers on such vessels is to be decided exclusively by the flag state, which in this case will be Cyprus. Moreover, it is crystal clear that the State cannot prevent a re-flagging that occurs as an integral part of exercising a right of establishment in another member state.

The Government has been advised that the attempt to do so through the terms of the Bill tabled by the Labour Party would be completely ineffectual and legally unsustainable.

Mr. Rabbitte

Why then is the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, speaking to them?

An Ceann Comhairle

The Deputy should allow the Minister to speak without interruption.

Mr. Martin

Once a right of establishment in accordance with European law is exercised, by definition, there would be a genuine link with the member state in which the vessel is re-flagged. Hence the Labour Party's proposed Bill will not solve the problem. In fact, it will compound the situation by unfairly raising expectations of a legislative solution.

Mr. Stagg

There is no fear of the Minister raising expectations.

Mr. Martin

We offered to share our analysis of the legal position with the representatives of SIPTU and I understand this took place last Friday evening.

It serves no purpose to provide the illusion of a solution which is not available. Equally, I reject the suggestion that the deplorable circumstances in Irish Ferries can be repeated in other sectors of the workforce. This is, as Members know, not the case.

Mr. Stagg

It has already happened on the Minister's watch.

An Ceann Comhairle

Deputy Stagg, please.

Mr. Martin

Seafarers and states operate within well-defined international legal provisions and conventions. It is a regime that applies to that industry. That is not the position in other industries.

Mr. Stagg

It did, because the Minister had no inspectors. It happened all over the place.

Mr. Martin

The position of other workers is entirely different.

An Ceann Comhairle

I ask Deputy Stagg to allow the Minister to speak.

Mr. Martin

Irish labour law and Irish regulations can and will be applied to workers from other member states, or from outside the European Community. Furthermore, the Taoiseach has signalled publicly and in direct discussion with the trade union movement, that we are prepared to strengthen the provisions to secure employment protection in the Irish labour market and to engage fully with them in that regard. As I have already indicated, there have been useful discussions at political and official level already in that respect.

There can be no doubt about the position of the Government. It deplores the behaviour of the management of Irish Ferries.

Mr. Stagg

It did nothing about it.

Ms B. Moynihan-Cronin

Talk is cheap.

Mr. Martin

In the interests of the wider social and industrial relations environment, a negotiated solution should still be sought and we are determined that effective protection of employment standards will apply.

Finally, we believe that this is best secured within the context of social partnership. As the House debates this issue, the Labour Relations Commission continues its deliberations in the hope of finding a basis and process by which the parties can move forward. I do not want to say anything further at this point, except to wish the commission success in its complex task and to encourage both sides to engage in earnest, given what each of them and this country have to lose if they do not.

Mr. Howlin

I wish to share time with Deputy Broughan and perhaps the Chair might inform me when my time has elapsed.

An Ceann Comhairle

Is that agreed? Agreed.

Mr. Howlin

This is an extraordinary situation, underscored by the fact that I understand this to be the first debate of its kind since the foot and mouth crisis threatened our entire economic well-being. That issue united the country and I believe there is now extraordinary attention on this issue, well beyond the focus of a mere industrial dispute. What is happening? Why, as the Minister informed the House, is our economic well-being under threat? The ability to move some 30% of our imports and exports, the capacity of industry to supply itself and to move its goods off this island and the stability of social partnership itself are threatened. They are threatened because a single, maverick company has taken it upon itself, unilaterally, to demolish 20 years of social partnership and to ignore the well-functioning, well-constructed and highly respected labour relations institutions which have been carefully crafted to solve issues on the basis of partnership and mutual respect. They are threatened because one company has decided the success we have achieved in respect of partnership is to be set aside and that its greedy objectives can only be achieved on the basis of conflict, rather than partnership.

What has the Government's response been? The Government has stated it can do nothing. The Taoiseach said as much last week. Perhaps, as the Minister has suggested to the House, it is entirely coincidental that the Taoiseach's declaration of impotence coincided with the company's action to send in so-called security personnel to intimidate workers. This was the first time for decades that such actions have been seen in any industrial relations dispute. Thankfully, as the House has been informed, those security personnel have been removed. Finally perhaps, the voice of reason has even reached the ears of that company's board of directors.

I do not believe the Government is impotent. I believe it is not trying. What can it do? The leader of the Labour Party indicated our international rights under the United Nations Convention on the Law of the Sea. He informed this House that there is a requirement under Article 91 of that convention, to which this State, every other member state of the European Union, as well as the European Union itself as an entity, are all parties. It is an internationally binding treaty which states that a genuine link must exist between the state whose flag a ship flies and the ship itself. The Minister has indicated, as did the Taoiseach previously, that because of European treaty requirements that allow for the right of establishment in another member state, we are impotent to act under Article 91. We reject that. If there is a will to do it, we can certainly argue that the treaties of the European Union cannot be used to undermine the clear intention of the UN convention, to which we are signatories.

It is amusing that the Government feigns impotence in respect of an issue of such critical importance given that it can act unilaterally regarding other matters. For example, we allowed workers from the newly acceded states free access to work in Ireland from 1 May 2004 but we unilaterally decided not to give them access to social welfare benefits for two years. This is being challenged in the European courts. I am not saying it is a good or bad decision but it is one we decided for ourselves. Members on this side of the House are now demanding that the Government show the same robustness in this case and not allow the company to reflag its vessels. If Irish Ferries wants to take us to the European Court of Justice, so be it — we will defend the rights of the workers. We certainly have a very arguable position if the Government has any bottle or is willing to prevent reflagging and take a stand that the company's actions are unconscionable.

I was on "Questions and Answers" last night and the nation was shocked by the views expressed by a distinguished economist. They are resonant of a view prevailing in some economic circles in this city and country to the effect that we are somehow moving towards the ultra-liberal position where workers are not partners in building an economy but rather tools to be manipulated, discarded and utilised at will. That will not wash with the people of Ireland, including the workers.

It is not true, as the Minister indicated, that this case does not apply to other areas of employment because we have noted that it does in cases that have arisen in our clinics. I do not know whether the Minister has noted it but he should because he is the Minister responsible for employment. In the construction industry, sectoral agreements are being set aside and people are expected to work for all the 48 hours to which they are entitled at a flat-rate minimum wage. Workers who have built up a package of entitlements are being told they can pack their bags if they do not like the conditions that obtain and that they will be displaced with people who are prepared to work on the minimum wage.

This is a defining moment for the State. We have built economic success and come close to full employment but the next phase of our economic development will either continue the good practices of respecting all the actors in social partnership or will be built on a maverick form of exploitation which now seems to have currency. There are too many people watching from the sidelines to see how this will pan out. My final call is to IBEC and the employers, who need to take a stand on one side or another of this argument. If the social partnership model of respect, operating through the institutions we have established in the State to resolve matters of dispute, is not the way forward, we will enter an era of conflict in which people are dismissed and regarded as mere cogs.

Irrespective of the crocodile tears and hand-wringing we have noted on the part of Members on the Government benches, including a succession of Ministers, they are complicit in allowing this dismantling to happen.

Deputies

Hear, hear.

Mr. Broughan

It is astonishing that the Minister for Enterprise, Trade and Employment can deliver a speech within which there is not a single proposal to address the horrific circumstances facing the workers of Irish Ferries on the Isle of Inisfree and Ulysses. He has the absolute cheek to ask the labour movement for a new social partnership deal when 543 workers have been threatened, abused and frightened. Their families were in tears some weeks ago when they were trying to decide whether to accept redundancy and sell their own jobs. The labour movement has not faced such disgraceful events since 1912 and 1913 when our great predecessors protested over the activities of similar thugs who tried to intimidate the working people of this city.

Deputies

Hear, hear.

Mr. Penrose

They have had many successors.

Mr. Broughan

Many would say the Taoiseach, Deputy Bertie Ahern, has totally abandoned the Irish Ferries workers and is guilty of an appalling dereliction of duty on foot of his comment that there was no more he could do. Shrugging his shoulders and holding up his hands, he gave the green light to these outrageous events.

Mr. Stagg

Pontius Pilate.

Mr. Broughan

I have received many reports from former work colleagues regarding the officers stranded on board the two vessels. They have had the highest praise for the professionalism and competence of the officers, who have dedicated themselves to what is often a tough and difficult job with long stretches away from home and family. They do not deserve to be treated with such thuggery and contempt by their employers.

Irish Ferries officials entered the Isle of Inisfree with a gang of so-called security personnel, allegedly from a north County Dublin firm, and gave no warning to the captain of the ship, who is ultimately responsible for the security and safety of everyone on board. Some years after the events of 11 September 2001, and just a few months after a major security disaster in London, can one believe that they would act in such an illegal and outrageous manner — in an almost terrorist-type manner?

I have received allegations from family and close friends of the workers, and from many of our SIPTU and International Transport Federation colleagues on board the Isle of Inisfree, that they saw metal bars and crowbars in the luggage of the so-called “security personnel” that were brought on board. For this reason, I contacted the Minister for Foreign Affairs, Deputy Dermot Ahern, early on Friday on behalf of the workers and asked him to request the Irish ambassador to the United Kingdom, DaithíÓ Ceallaigh, to travel immediately to Pembroke to try to ensure the safety of our citizen workers on the vessels. I have also contacted the Garda National Bureau of Criminal Investigation and Chief Superintendent Noel White at Harcourt Square regarding what I believe were criminal actions on the part of the management of Irish Ferries. What are the results of this investigation?

We have read reports in the Irish Independent and the Sunday Independent about even more outrageous plans involving the use of tear gas, which plans have been referred to earlier today. The managing director of Irish Ferries, Mr. Eamon Rothwell, wrote in the Irish Independent this morning about so-called black propaganda that is being issued against his company. However, his article is a tissue of disingenuous and even blacker propaganda. Almost every point therein is a direct contravention of the truth. He states that independent examination of the company’s books by Farrell Grant Sparks, the consultants nominated by SIPTU, verified the kinds of outrageous cutbacks he wanted to implement. The exact opposite is the case. The report stated that the existing agreement should have extended to 2007.

Mr. Rothwell also refers to crews from eastern Europe receiving pay in real terms that is "30% higher than on-land Irish minimum wages". This is a complete joke given that workers are working in virtually slave-ship conditions, with four months on and so-called four months off. Mr. Rothwell refers to his company, Irish Ferries, standing on its own two feet. What about the €3 million in tonnage tax that this State gave to the company to sustain it? What about the PRSI concessions given to his company? Has the Minister not got a duty to tell us this evening what will happen to the significant subventions the State gives Irish Ferries on an ongoing basis?

Deputies

Hear, hear.

Mr. Broughan

Given that budget day is next week, does he not have an obligation to tell us what will happen?

Mr. Rothwell has the cheek to refer to the labour relations mechanisms and state the company has been back and forth to the Labour Court, the Labour Relations Commission and the national implementation body. The direct opposite is the truth because it was he who told all those involved in the labour relations mechanisms to go to hell and that he had enough of them. He begins his article with such a quote. His behaviour has been outrageous and disgraceful and his article is a tissue of lies.

The Taoiseach is directly responsible for this impasse. Instead of wringing his hands, he should have taken action on some of the fiscal and other matters I have mentioned. He had the opportunity to use our labour Bill, the Mercantile Marine (Avoidance of Flags of Convenience) Bill, to draw a line through an international convention. Our advice is that it is perfectly legal. We could pass that Bill this evening before this session ends, just as he passed the commercial property Bill some months ago to protect our property. Let us protect our workers. They are surely as valuable as our property. Let us pass the Labour Party mercantile marine Bill and make reflagging impossible.

The Taoiseach, Deputy Bertie Ahern, is personally responsible for this. For six years he had the opportunity to do something in Europe when the ferries directive was being discussed. The directive would have obliged shipping companies to adhere to the pay and conditions applicable in the countries between which the companies' ships were sailing, that is, France or Ireland or Britain. Fianna Fáil Ministers, including the former Ministers, Senator O'Rourke and Deputy Woods, and the Minister of State, Deputy Fahey, were among a cabal of right-wing European Ministers who stopped that proposal when it was discussed between 1998 and 2004.

Mr. Martin

The Deputies are letting Irish Ferries off the hook.

Mr. Broughan

The Taoiseach is personally responsible because he did not take any action.

Mr. Rabbitte

That is the first Deputy Martin has heard of it. He has that look on his face.

Mr. Martin

The Deputies are letting Irish Ferries off the hook.

Mr. Broughan

The Taoiseach is personally responsible. He was aware that the situation in Irish Ferries was developing. All Members get reports in their clinics of migrant workers being abused in shameful ways. The Taoiseach knew this was happening and he should have made preparations to meet this crisis head-on. Instead, he is nowhere to be seen. He should be here this evening to deal with one of the most serious crises in the history of this country.

Mr. Morgan

I wish to share time with Deputies Healy, Joe Higgins, Gregory and Eamon Ryan.

Acting Chairman (Mr. McCormack)

That is agreed.

Mr. Morgan

This Irish Ferries debacle is a disgrace. It is a disgrace that the company is displacing hard working, committed and long-standing workers simply to make an even greater profit than that which it already makes. It is a disgrace that the company has torn up last year's agreement with SIPTU and the Irish Seamen's Union and thrown out the Labour Court decision of 14 November, which states that there is no compelling case for it to seek to break that agreement.

The actions of the company last week in putting on board the ships stormtroopers from a company specialising in global terrorism to enforce a new regime on Irish workers were disgraceful. To deploy such overtly military personnel, who may well have been armed, is a disgrace. The treatment of agency workers who are currently on board the MV Normandy and those who will be on other ships in the future is a disgrace. However, the biggest disgrace is the inaction of the Government. What does the Taoiseach say? He says he can do nothing. He throws up his hands as if he were an unemployed person walking up O’Connell Street in the afternoon. Somebody should tap him on the shoulder and say, “Bertie, you are Taoiseach of this bloody State. You are the guy in charge. How can you do nothing about it?” Of course, we know the answer. The Taoiseach does not have the will to do anything about it.

This matter is not just about Irish Ferries. It is about the type of society and standards we want. As a senior trade unionist put it at a recent meeting, we need a threshold of decency. That threshold should ensure that poor people will get proper services and proper terms and conditions of employment. Irrespective of what Ministers say, the buck stops with the Taoiseach but he is not doing anything about this matter.

Irish Ferries has effectively declared war on the rights and conditions workers have gained over many years. If the company is allowed to proceed in this way, the floodgates will open. Some Ministers say that this issue is peculiar to Irish Ferries. That is not the case and everybody on both sides of the House knows it. They are only trying to put up a smokescreen to gain time. They should not be allowed to get away with it.

Displaced workers and their replacements, namely, migrant workers, who are subject to low rates of pay and exploitative working conditions, are now a feature of how the labour force in this State is to operate. It is time to say that enough is enough. I hope there will be a mass mobilisation in support of the day of action on 9 December. I hope people come out and make it clear to the Government and everybody involved that inaction is not good enough. The wink and nod attitude to the management to proceed with this action is unacceptable. I ask people to begin preparing for that day of mobilisation.

The true face of the neoliberal agenda being pursued by the current Government was laid bare on the "Questions and Answers" programme on RTE last night by the economist, Dan McLoughlin. He said what the Government thinks but will not say.

Mr. Martin

He is not a member of the parliamentary party.

Mr. F. McGrath

He is a supporter.

Mr. Morgan

He said that it is all right to exploit workers if competitiveness depends on it. That is the agenda being promoted by the nod and wink attitude of the Government. That is the attitude being promoted by the lack of Government action and by a Taoiseach who says that he can do nothing about it. I hope the people of the State will give the Government their reaction on 9 December.

Mr. Healy

Like other Members, I condemn the SAS-type bully boy tactics of Irish Ferries at the weekend. Thankfully, the company came to its senses to some extent this afternoon and withdrew the so-called security personnel from the vessels. The antics of Irish Ferries are reminiscent of the William Martin Murphys of the Dublin lock-out of 1913. I hope the day of action on 9 December encourages this company to take on board the views of ordinary decent people and of the State's industrial relations machinery.

We have heard some Members call on the Taoiseach to knock heads together and to resolve this matter. However, only one set of heads needs to be knocked together, that is, the heads of the managers of Irish Ferries, a maverick company that has been involved in disgraceful and unscrupulous conduct in recent months. If they are allowed to get away with this, every unscrupulous employer in the country will want to do the same. Unfortunately, even decent employers will be forced to consider using similar tactics because they will be undermined by unscrupulous companies paying little or no wages and providing poor work conditions.

This issue goes to the heart of Irish society. Everyone is challenged either to be on the side of decency and social justice or that of thuggery and the law of the jungle, as espoused by Irish Ferries. I call on the Taoiseach to introduce emergency legislation immediately to stop the reflagging of these ships and to ensure that Irish Ferries workers are paid Irish wages and given Irish conditions of employment.

Mr. J. Higgins

When the Taoiseach raised the white flag of surrender last week, it was, of course, the starting flag for Irish Ferries management to implement its union busting, bullying tactics that are reminiscent of the employers of 1913 when they set out to strangle the trade union movement in its infancy. Irish Ferries workers and employees in general in this country can expect from this Government just as much as it has done to date with regard to Irish Ferries — absolutely nothing effective. Workers will find a resolution in their own power, however, and will demonstrate it to Irish Ferries and all those employers who are silently cheering on Irish Ferries because they want to engage in super-profiteering at the expense of migrant labour.

The national day of action on Friday, 9 December, called by the trade union movement should, with the exception of the provision of essential services, be elevated to a one-day national work stoppage. Massive demonstrations should accompany that one-day national strike. That is how the great men and women who founded the labour movement — including great working class fighters such as Connolly and Larkin — to deal with employers of this nature would have met this challenge. That is how they would have met the greed-driven employers who are intent on driving workers' wages and living conditions back to the dark ages. A national work stoppage would be a shot across the bows of Irish Ferries and employers. It would also be a warning to the Government that it should stop Irish Ferries in its tracks and a signal that any employer that takes a similar road of exploiting labour will be met with an equally robust challenge.

Mr. Gregory

I wish to place on record my solidarity with the 550 workers in Irish Ferries whose livelihood is under immediate threat. On 11 October, I tabled a motion condemning the actions of Irish Ferries and its intention to re-register ships under flags of convenience to facilitate the displacement of Irish workers and their replacement with exploited labour.

Mr. F. McGrath

Hear, hear.

Mr. Gregory

We, the Independent Deputies, called on the Government to initiate EU-wide legislative measures against the attempt to do so. Fianna Fáil and the Progressive Democrats voted against that motion and proceeded to take no action whatever. The Taoiseach issued a statement weeks later contending there was nothing else he could do. He effectively gave the green light to Irish Ferries to proceed with its plan.

Mr. J. Higgins

Pathetic.

Mr. Gregory

It was only when public outrage grew and when the workers took direct action that the Government began to understand that it would not get away with its pathetic failure to defend the 550 jobs to which I refer. The Fianna Fáil-Progressive Democrats Government has been shown up for the sham it is on this issue.

Mr. F. McGrath

Hear, hear.

Mr. Gregory

The message is clear. Fianna Fáil and the Progressive Democrats are not prepared to represent the interests of Irish workers.

Deputies

Hear, hear.

Mr. Eamon Ryan

It is often said that we in Ireland live in an open economy and that ours is among the most open trading economies in the world. In many ways we have benefited from this because we have enjoyed large revenues and much success as a result of companies establishing operations here. The difficulty and risk of operating in such an open market is that we are subject to the vagaries of international capitalism moving from one location to another.

In this case, the damning issue is that we are not speaking of a company based elsewhere. Irish Ferries is not based in the United States, nor is it making a decision to leave Ireland for another country because of a marginal gain in its bottom line. This company's directors, board and shareholders are predominantly based in this country. A clear message should go out tonight to the directors and management of this company. The actions they have taken and the methods they have chosen, along with the motives and morals exhibited, are shameful. The message should be that every individual party and politician in this House agrees that the company's behaviour is shameful.

The behaviour to which I refer threatens not only the future success of the company and the jobs of its current employees but also the character and development of the economy, given that it operates in an open and obvious way. Those directors, who are human beings, are no doubt standing this week at some social function or other, looking down at well-pressed trousers and tidy shoes, but they should not raise their heads and should not be able to carry on as if what they have done is a normal part of business activity, nor should they think that it is always about the bottom line. If we exist in such an open economy in a competitive world, that culture can only lead to a loss of all standards and instances where the bottom line replaces any other motive or measure for what is done or not. I say directly to the company directors and the Minister that such a culture is not acceptable.

There has been ineptitude on the part of the Progressive Democrats and Fianna Fáil in terms of taking action in respect of this matter. As Deputy Broughan stated, there was a repeated failure to introduce or support relevant European legislation that could offer protection. The bigger issue is that, for the past eight years under this Government, there has been a two-tier society which encourages enterprise but which does so in the context that nothing else matters. This message directed at employers and directors has led to Irish Ferries believing that its actions are acceptable and accepted practice in modern Ireland. Its inaction and inability to see the seriousness of this issue is a problem and will be a legacy of this Government.

I agree with previous speakers in that what the Minister has presented tonight is another case that nothing can be done and that it is up to the Labour Relations Commission or other industrial authorities. That is not acceptable. We expect the Minister to investigate what is possible in the European arena or through domestic legislation. I do not, and neither should the House, accept that the simple measure of moving to a flag of convenience in Cyprus means that vessels that are effectively owned here, that enter and leave Irish ports every day and that depend on Irish services and port facilities to operate can function in a manner which has nothing to do with Cyprus and everything to do with Ireland. I refuse to accept that European legislation and regulations mean that, in these circumstances, we can do nothing and are dependent on what the country of the flag of convenience stipulates or does.

I have been given a list of the directors of Irish Ferries. These are the chairman, Mr. McGuckian, Mr. Peter Crowley, Mr. Bernard Somers, Mr. Rothwell, Mr. O'Dea and Mr. Kelly. They have questions to answer in terms of what is emanating from this debate. That applies, in particular, to the directors of the company who are setting this long-term strategy. We should respond to today's issue with one voice. The actions of the directors and the means by which they are operating are shameful, disgraceful and unacceptable. The company should operate successfully but on the basis of certain minimum wage and other conditions set by the Legislature. It is not acceptable for a company to attempt to ride roughshod over this Government and this Legislature, which sets the standards which should apply in this country.

Deputies

Hear, hear.

Acting Chairman

There will now be questions to the Minister for 30 minutes.

Mr. Hogan

I thank everybody who contributed to the debate. I have some questions which could elicit information from the Minister that he did not include in his contribution. The Minister is aware that there has been a €51 million investment in the Ringaskiddy college for Irish seafarers. With the loss of one major employer in the sector, where will these seafarers find employment? Will the investment be worthwhile?

The Government has, for some time, been in possession of a report, commissioned by Farrell Grant Sparks 18 months ago, which contains issues relating to Irish Ferries but about which it has done nothing. The Irish Maritime Development Office reviewed the sector's State aids and recommended their implementation three years ago. However, the Government did nothing about this. Is it fair to state that the Government has been aware of all problems associated with seafaring and working conditions in Irish Ferries for up to three years and has done nothing to deal with the matter?

Has the Government paid its portion of the redundancy obligations to Irish Ferries workers on the MV Normandy? How much has been paid? Are there any plans to revisit the matter? Has the Minister made any approach to his EU counterparts to develop a policy for a co-ordinated approach to proper employment standards across all sectors in the European Union, particularly in the country to which reference was made? Difficulties could arise from being an island nation.

Mr. Martin

The Minister of State at the Department of Communications, Marine and Natural Resources, Deputy Gallagher, will also deal with issues relating to the maritime sector.

Mr. Howlin

Very good.

Mr. Martin

With regard to the €51 million investment in the maritime college, it is a state-of-the-art facility in Ringaskiddy. The Government made the investment to enable the facility to train future seafarers and become a centre of excellence where we could contract in other interests from outside the State to be trained. It was a worthwhile investment of which we are particularly proud. It will continue to make a significant contribution to training and education matters pertaining to maritime issues.

Having listened to the debate, there seems to be a unified position in the House that the behaviour of the management of Irish Ferries is reprehensible and wrong. We should adhere to this position and ensure that, at the least, it emanates from the House as a clear message.

Mr. J. Higgins

What will the Minister do about it?

Mr. Martin

Notwithstanding that, it is to over-politicise the issue for party political gain and advantage to try to somehow——

Mr. Howlin

To somehow require the Government to do something.

Mr. Martin

——suggest that the Taoiseach is responsible for this, which was suggested in some contributions. That is fanciful, farcical and has no reality in the context of what has transpired.

Mr. Broughan

It is historically accurate.

Mr. Martin

If any Member of the House has made a significant contribution through the years to the improvement of workers' rights in the context of social partnership, which is a unique model from which Ireland has benefited significantly, it is the Taoiseach.

As an agreement, social partnership has been fundamentally responsible for the advancement of workers' rights, social conditions and social programmes and has led to a consensus approach between unions, employers, the Government and all parties to advance the social agenda in this country. I assure the House that the Taoiseach remains committed to improving and enhancing that agenda, to closing any gaps that may open because of globalisation or otherwise, to continuing to copper-fasten the protection of employment rights and to ensuring compliance with labour law.

Deputy Broughan stated we had a cheek to call on people to engage in social partnership.

Mr. Broughan

The Government is not behaving like a partner.

Mr. Martin

I and the Government passionately believe that these issues are best resolved in terms of the protection of labour and employment standards, and that social partnership offers us the best opportunity to achieve this in the coming weeks and months.

Mr. Broughan

The Minister should kiss it goodbye.

Mr. Martin

It is the best way to do it. To suggest we kiss it goodbye would be to undermine the rights of workers. We have opportunities to protect the rights of workers in the context of social partnership.

Mr. Hogan

Will the Minister answer the questions?

Mr. Martin

I have indicated to the social partners that we are open to enhancing the modalities of inspection to ensure labour law compliance in Ireland.

Mr. Howlin

Will the Minister answer the questions?

Mr. Martin

We are open to the enhancement of resources. We have paid the redundancy payments to the workers on the MV Normandy.

Mr. Hogan

How much was paid?

Mr. Martin

I do not have the exact figures but I can get them for the Deputy.

Mr. J. Higgins

It was €1.1 million.

Mr. Martin

We did that under a certain set of circumstances and certain terms of propositions advanced by the company and the unions, which agreed at the time in those particular——

Mr. Hogan

What were the circumstances?

Mr. Martin

They were the circumstances advanced in terms of the discontinuation of the service, as then advanced by Irish Ferries——

Mr. Howlin

It was not discontinued.

Acting Chairman

Deputy, please. Everybody will get their chance.

Mr. Martin

——and also in terms of the protection of the situation on the Irish Sea, for which certain commitments and guarantees were given to the Government——

Mr. Howlin

And broken.

Mr. Martin

——and subsequently broken.

With regard to the legal position, we are satisfied that the set of circumstances applied to the MV Normandy was separate to that which now applies. As I indicated, we have not yet received a redundancy notice from Irish Ferries in regard to the current situation. I have taken legal advice from the Attorney General. I have indicated publicly that the preliminary advice on the current situation is that it does not appear a legitimate redundancy scenario, although that is subject to more detailed analysis if we receive a redundancy notice from the company.

I will ask the Minister of State at the Department of Communications, Marine and Natural Resources, Deputy Gallagher, to deal with the maritime issues.

Minister of State at the Department of Communications, Marine and Natural Resources (Mr. Gallagher)

While I am here to answer questions, I condemn in the strongest possible fashion the activities of Irish Ferries on Thursday evening last.

I had responsibility for and agreed to the flagging out of the MV Normandy. I did not take that decision lightly. I had meetings at that time——

Mr. J. Higgins

Shame on the Minister.

Mr. Gallagher

Let us establish the facts. I did not take that decision lightly. I met the union representatives and representatives from Irish Ferries. Given the vulnerability of the situation between Ireland and mainland Europe at that time, I took the view that it was necessary to take the decision. However, I was given a very strong assurance by the company that this would not in any way, then or in the future, affect the situation on the Irish Sea routes. I am disappointed at the outcome.

Mr. Howlin

Disappointed. They lied to you.

Mr. Gallagher

That was the situation which was made clear to me at the time. If I did this——

Mr. Howlin

That was months ago.

Mr. Gallagher

Yes, it was a number of months ago. I first heard of the decision to offer an attractive redundancy package some ten minutes before it was announced in the media, and I heard it third or fourth hand. While I did not have to be told, as the line Minister I could have been advised in advance and could possibly have entered into negotiations or discussions at that time.

On 12 October I met David Begg and the union representatives from SIPTU and the Seamen's Union of Ireland, who made a number of suggestions to me. The following day I met my colleague, the Minister of State responsible for labour affairs, and pursued some of those suggestions, but with no success.

I met last Wednesday evening with the representative of Irish Ferries. I made clear to him my disappointment at the company's attitude, given that the company had provided an assurance that there would not be a problem on the Irish Sea in the future. I asked him when the company might be subject to flagging out, which my legal advisers have not yet clarified can be done. The day may come when I will have no option but to accept this approach, but I must have all the facts at my disposal. I posed the question to the Irish Ferries representative with regard to the transition that might take place but I was not even afforded the courtesy of being told it was taking place within 24 hours. The House can fully appreciate my attitude when I was not even advised on the matter. I might not have been able to do anything about it but I certainly would have given advice on what should be done, and that common sense should prevail. I hope it will prevail.

Mr. Howlin

I listened with some care to the Minister's speech. If Article 91 of the United Nations Convention on the Law of the Sea, which concerns the requirement to have a direct connection between the ship and the state, does not apply in this case, why did the Minister tell the House that the Attorney General is seeking information from Irish Ferries about that connection? Either they are seeking it in a sham way to fool the workers or the Labour Party analysis, which the party leader and I put to the House earlier, is correct, namely, Article 91 does apply, there must be a connection between the vessel and the flag and we can oppose the reflagging.

If the Government can take unilateral action to safeguard social welfare payments, which at the end of the day involve money, and take its chances subsequently with a determination in the European Court——

Mr. Martin

Will the Deputy repeat that?

Mr. Howlin

If the Government could take unilateral action last year to ensure that social welfare resources were protected by denying new member states' citizens the right to claim social welfare here for two years, despite the fact this may breach European law, why can it not act unilaterally, and take its chances in the European Court with a clear, stateable case, to safeguard Irish workers, social partnership and decent standards of industrial relations?

I expect a direct answer to my next question. Has the Taoiseach raised this issue this week at the EU-Mediterranean Summit, when the Heads of Government of all the member states are present with him? What was their response? What is the attitude of Government to the EU directive on manning conditions that it shamefully voted down last year? Will it at this late stage revisit the directive, support it and build a consensus so that decent standards apply on all ferries operating in the Union?

Mr. Martin

EU law is very clear on the issue of re-flagging and the right of establishment. There is a process to follow when an application is received.

Mr. Howlin

On a point of clarity——

Mr. Martin

With respect, the Deputy asked a question to which I am giving a specific answer. The Attorney General has advised the Minister for Communications, Marine and Natural Resources on processing the application. I have outlined the realities of the situation once the connection is established. The company is outlining issues regarding the connection.

Mr. Broughan

Was the Bahamas turned down?

Mr. Martin

EU law is very clear on that.

Mr. Howlin

Will the Minister make it clear?

Mr. Martin

It is not comparable to the Deputy's points about social welfare and the decision we took on EU migrants coming into the country. The law is very clear on the right to re-establishment.

Mr. Howlin

Why is the Attorney General asking for flags in that connection?

Mr. Martin

We decided, above and beyond any other country apart from the United Kingdom, to allow migrant labourers come in on social welfare.

Mr. Howlin

That is a side issue.

Mr. Martin

The Deputy raised it. On that issue the Commission has challenged us. That decision cannot be compared to reflagging and so forth. The Taoiseach informally raised with other EU leaders the issues pertaining to the Irish Ferries experience. I have not received a formal report from the Taoiseach about the EU-Mediterranean Summit. This issue was not formally on the agenda but he has had informal discussions with other European leaders about how we might move on it.

Mr. Howlin

What about the EU directive on manning?

Mr. Gallagher

The Deputy knows the history of the EU manning directive. As a result of my meeting with David Begg, SIPTU and the Seamen's Union of Ireland I asked the European Commission about its intentions regarding the possible reintroduction of that directive. It may take some time but the clock must start ticking.

The Commission indicated it had no plans to introduce a similar directive. I will attend a marine transport meeting in Europe next week where I will speak with my colleagues and impress the need for this upon them. I took the opportunity when I was in the United Kingdom some weeks ago to discuss this issue with Mr. Ladyman, the Minister of State at the Department for Transport with responsibility for marine transport, because this will be a problem for the United Kingdom too.

As a result of my meeting with David Begg and the other representatives I considered entering into some form of tripartite agreement with the United Kingdom and the French authorities. The initial legal advice I received, however, indicates that organising such bilateral or trilateral agreements could be exceedingly complex, quite lengthy and may not help to resolve this problem.

The International Labour Organisation's consolidated maritime labour convention, which was mentioned at our meeting, unfortunately does not apply to rates of pay. In short, I support putting a new directive on the agenda and will take the initiative in consultation, even informally with the French and UK Ministers, next week. I have already flagged this with the UK Minister of State.

Mr. J. Higgins

Is the Minister struck by the nauseating double standards in many sections of the print media, especially Independent Newspapers, in their coverage of the sending of bully boys onto Irish Ferries ships? This has been reported in the most sedate language. Has the Minister contrasted that with the paroxysms of fury in Sir Anthony O'Reilly's title, the Irish Independent, when it vilified groups of workers such as those in the ESB and An Post who had to resort to some mild industrial action to defend their interests? The same title has an inglorious history in the events of 1913.

Is this contrast due to the number of blue chip capitalists, including leading bankers, and a director of Independent Newspapers, who sit on the parent board of Irish Ferries? Does the Minister agree this suggests that big business strategists as a whole are in favour of Irish Ferries' neo-liberal policy of driving down wages and conditions?

Since workers can now expect little from this Government, the Minister and the Taoiseach having thrown their hands up in the air, does the Minister join the call of the trade union movement on working people in their greatest numbers to demonstrate on 9 December? Will he encourage them to leave work to show this company that workers' power can stop it in its exploitation plans, even if the Government cannot?

Mr. Morgan

Does the Minister accept that under social partnership major penalties apply to trade unions which do not comply with the terms of that agreement? Does he accept that IBEC members suffer no such penalties for breaches of agreement? Workers therefore depend completely on the Minister and the Government to protect them which it is not doing for the workers on Irish Ferries. Does he accept too that this issue goes beyond Irish Ferries and if the company is allowed to get away with this action the standards of Irish workers will virtually collapse?

Mr. Perry

Did the Minister have a signed deal on the reflagging of the MV Normandy in regard to the future plans of the company? Was giving that concession not the green light for other operators to take that derogation? What type of deal was in place?

Why did the Minister not act on State aids in respect of the Irish Maritime Development Office? Why was no action taken when the Farrell Grant Sparks report stated it was a mistake to reflag the MV Normandy?

Mr. Martin

Who said that?

Mr. Perry

That report clearly indicated——

Mr. Martin

No one said anything about any mistake.

Mr. Perry

——that it should be revisited. Why did the Government sit on the report for 18 months without taking any action on it?

Mr. Gallagher

It is much easier to be an historian than a forecaster and there are some good historians around. This was done in good faith and the unions were fully aware of this. I respect the unions because this was a difficult issue for them at the time, led by Paul Smith of SIPTU. I admired the unions for their practical and pragmatic approach. There was no question of any signed deal in this issue. It was done in good faith, given the assurances that this would sustain the position on the Irish Sea. If it was wrong, so be it.

I advocate State aid for the shipping sector, not sweetheart deals with any company. This is not exclusive to Ireland. The Commission advocates State aid whether it be a unique income tax allowance available to seafarers working at sea for 160 days a year. The tonnage tax is not in place only for Irish Ferries but for all involved in that business. We were asked many times about the PRSI of employers of seafarers and my predecessors had to go back to Europe but we have finally secured approval for that.

Mr. Perry

When?

Mr. Gallagher

Last week. It goes back to 1 January 2004. All companies will benefit from that approval. This is a difficult business within Europe. If there was no flagging out to the Bahamas and elsewhere the companies might not be on the same footing. I seek a level playing pitch. I am anxious to put this in place and the Commission approved the employers of seafarers PRSI refund scheme. I indicated it on Wednesday evening to the representative of the Seamen's Union of Ireland. If that would have resolved the problem, it would have done so on Wednesday night. I would have felt guilty——

Mr. Broughan

Did the Minister of State tell the Taoiseach to keep his mouth shut?

Mr. Gallagher

I did not.

Mr. Martin

I have not got sick yet from reading the Irish Independent and some of the nauseating dimensions to certain media commentary.

Mr. J. Higgins

I got so sick, I am immune to it.

Mr. Hogan

The Minister should not sicken Deputy Joe Higgins.

Mr. Martin

We need to be careful when using rhetoric in this matter. I have sought to place it in perspective.

Mr. J. Higgins

Will the Minister admit to the hypocrisy of it all?

Mr. Martin

I have noted the understandable anger from all Members about how the management of Irish Ferries has gone about this dispute.

Mr. Morgan

It is genuine anger.

Mr. Martin

It is an important message to come from the House. It will also uphold the value of the industrial relations machinery in place to protect workers' rights. Both parties, employers and workers, must uphold and honour the outcome of the labour relations machinery, be it the Labour Relations Commission or the Labour Court.

Some rhetoric has been used in the House to position the Taoiseach as the cause of the problem. Deputy Joe Higgins is equally guilty of utilising rhetoric as fanciful and farcical in his accusations against the media.

Mr. Morgan

He has the cure. He has the solution.

Mr. Martin

By and large, the media supports the continuation of social partnership. There will always be balances and emphasis and positions will be taken by respective media organs where the outcome of any social partnership agreement should rest in dealing with competitiveness and the challenges of globalisation.

The Government has not thrown its hands in the air. Deputy Morgan asked if the Government is fearful that this dispute will go beyond Irish Ferries into other sectors of the economy. The one way we can prevent it from doing so is to ensure the compliance regime for labour law is adequate and that through social partnership arrangements are put in place to further enhance the regime. The Government has indicated to the unions and employers that it is flexible, in terms of the modalities that may be applied, to ensure no reduction in employment standards and pay conditions in the broader economy. The Government has worked too hard to build up the living standards of workers to have them reduced.

Mr. Morgan

They are slipping now.

Mr. Broughan

The Government better start doing something then.

Mr. Martin

Fanciful as it is to speak in a rhetorical fashion as if we were back in 1913, we simply are not.

Mr. Morgan

We might as well be back in 1913.

Mr. Martin

We are in 2005. There was no deal done by the Department of Enterprise, Trade and Employment or any other in the reflagging or redundancy package of the MV Normandy. It was done in the context of the Redundancy Payments Act and the information available.

Mr. Perry

Will the Minister agree that a precedent has been set in this case?

Mr. Martin

The legal position is that no precedent has been set.

Mr. Healy

Is it not true that the Fianna Fáil-Progressive Democrats Government has maintained a culture of support for the race to the bottom, as seen in Irish Ferries? Is it not true the Government opposed the EU ferries directive last year? Will the Government now support the directive? Is it not true the Government supported this type of action by Irish Ferries with the MV Normandy last year? Is it not true the Government supported the services directive, effectively a charter for this type of race to the bottom? Is it not true the Taoiseach kept his mouth shut while his EU Commissioner supported a similar action in Sweden by a Latvian company? There has been a deafening silence on the Taoiseach’s part on this matter. Will the Minister support the day of action by Irish workers against Irish Ferries on 9 December?

Mr. Boyle

As the Minister responsible for the implementation of the Companies Acts, have the fitness to practise provisions been examined regarding the directors of Irish Ferries? These are executive and non-executive directors who have stood idly by and witnessed acts of intimidation, possible uses of violence and threats to use tear gas. If the Companies Acts do not include these matters in the fitness to practise provisions, will they be included in the forthcoming review of the Acts?

The Minister of State has experienced difficulties in reaching trilateral agreements with Britain and France. However, the Treaty of Nice, although some of us voted against it, includes the provision of enhanced co-operation to secure agreement between member states in a situation which is above EU law. If the Government has not examined these provisions, it is not doing its job.

Mr. Broughan

Regarding complaints to the Garda about the outrageous methods that were used against Irish Ferries workers in Irish ports, will the Minister for Justice, Equality and Law Reform inform the Minister if there is an ongoing Garda investigation? The Minister for Enterprise, Trade and Employment, Deputy Martin, and the Minister of State at the Department of Communications, Marine and Natural Resources, Deputy Gallagher, have contradictory views on reflagging. Did the Minister for Enterprise, Trade and Employment turn down a request by Irish Ferries to reflag in the Bahamas? Cyprus is the new proposed flag state which is on the register of flags of convenience. It is incumbent that such reflagging is not allowed, regardless of the EU position.

If the Labour Party's mercantile marine Bill is introduced into the House, is it true the Tánaiste and Minister for Health and Children, Deputy Harney, and the Minister for Justice, Equality and Law Reform, Deputy McDowell, would vote against it while Fianna Fáil would support it? Is the Government split on this Bill? Would the Progressive Democrats leave Government on its introduction? Is this the actual crisis we are debating?

Mr. Costello

Probably.

Ms C. Murphy

I always understood that when a worker is made redundant, the job no longer exists. Given that these jobs are being replaced by exploited labour, has the Attorney General advised the Minister that this extends beyond the issue of the job being made redundant? Has the Minister contacted his British counterpart on the health and safety issue in this dispute? Did he have any fears for staff in the Irish Ferries vessels in British ports?

Mr. Gregory

Have private security firms in the State access to tear gas? What action is the Government taking on this matter?

Mr. Costello

Now that Irish Ferries has withdrawn its thugs, will the Garda investigation into the dispute continue? Will Irish Ferries make a commitment not to engage in such illegal practices again?

Mr. Martin

I will refer Deputy Gregory's question on private security firms' access to tear gas to the Minister for Justice, Equality and Law Reform.

Irish Ferries has withdrawn its security staff from the vessels. Any investigation is a matter for the Garda, if a complaint has been made. Has Deputy Broughan made a formal complaint to the Garda?

Mr. Broughan

Yes I have.

Mr. Martin

Then it is a matter for the Garda.

Mr. Costello

What about the Minister for Justice, Equality and Law Reform?

Mr. Martin

Deputy Costello should know the Minister does not carry out investigations. If he did, Deputy Costello would be the first to stand up and rail against it.

The Health and Safety Authority did consult its counterpart in the United Kingdom. We would need to see the redundancy notices from Irish Ferries to see if they constitute a legitimate redundancy scenario. To date we have received no such notice. It is fanciful to suggest the Government is split on its position on the Labour Party Bill. I assure the Deputy no such split has occurred.

Mr. Broughan

We have heard the Progressive Democrats are on their way out of Government.

Mr. Martin

The Government is united on the basis we do not want to give people illusions or pretend to workers there are solutions where there is none.

Mr. Broughan

Why tell them that?

Mr. Martin

That is the point I made in my original speech. There is no point in Deputies saying nice things and giving the impression that something can be done when that is not the case.

Mr. Broughan

It is about giving hope.

Mr. Martin

It is about being honest with those concerned, those at the heart of the dispute, rather than pretending we can do things which are not possible.

Mr. Costello

The Government has already thrown in the towel.

Mr. Martin

That is the reason we are not prepared to go down the route taken in the Labour Party legislation. Fianna Fáil and the Progressive Democrats are not pursuing a neo-liberal agenda, as Deputy Healy has suggested.

Mr. Costello

They have hoisted the white flag.

Mr. Martin

This Government has created the largest number of jobs of any Administration in the history of the State. It has significantly improved living standards which now far outstrip those of five or ten years ago.

Mr. Broughan

The Minister is giving Deputies the same old mantra.

Mr. Martin

These are the facts.

Mr. Healy

Will the Government prevent Irish Ferries from reflagging its vessel?

Mr. Martin

We have an obligation, a right and a commitment to maintain living standards. Deputy Boyle should note that the Director of Corporate Enforcement makes a determination on complaints made about the fitness to practise of any director under the law. As regards the review of company law, the issues raised can be considered in the context of legislation due next year.

I note the Green Party has consistently opposed co-operation and co-ordination at European level.

Mr. Boyle

The Minister knows he can approach the matter from that perspective.

Mr. Martin

It is wonderful and enlightening to see the party extolling the virtues of co-operation across the European agenda.

Acting Chairman

In accordance with the order of the House today, the motion that the Dáil now adjourn is considered to have lapsed.