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Dáil Éireann díospóireacht -
Thursday, 16 May 1996

Vol. 465 No. 5

Adjournment Debate. - Catering Industry Staffing Problems.

There are a number of country houses and restaurants throughout the country under the aegis of the Irish Country Houses and Restaurants Association who do good work for the tourism industry and the community in presenting excellent cuisine. However, a number of them have a problem in recruiting experienced staff.

The association has been concerned for many years with the difficulties encountered by the hotel and restaurant industry in obtaining the services of sometimes full-time but mainly part-time casual labour, especially married women. The industry could take a good number of married women off the Live Register and give them gainful employment. However, time and again they encounter great difficulty in doing so due to the lack of incentives, including imposition of taxes and levies.

My case is more relevant to the Department of Finance, but perhaps the Minister for Tourism and Trade, Deputy Enda Kenny, may refer the matter to that Department. Given that he is so involved in tourism development and promotion, he possibly understands my concern.

In certain cases the welfare of the women could be helped enormously. If women who depend on support from husbands drawing unemployment assistance or in receipt of other State benefits are employed, their husbands will lose benefits. In the overall context of the various grants, allowances or other funding given to industry, it is unjustifiable that we cannot do something to help these married women obtain employment which would, in a majority of cases, give them pride in themselves and some form of independent financial support. All that is needed is that a proper, worthwhile allowance be given to them on a weekly basis. In the overall context of the tax system, a weekly working wife's allowance of £120 per week — with no PAYE or PRSI contribution required — would not materially affect the Government's financial returns.

The members of the association, who provide considerable employment in this country, are aggrieved that they cannot employ married women, either on a full-time or a part-time basis, in what would be mostly menial jobs. Each year sizeable lobby groups make successful proposals to the Department of Finance to have various allowances and grants made to them. Regrettably the position of women is weak, therefore, no group has helped them in what can only be regarded as a draconian situation. There is nothing to take people out of the black economy and officially give them proper employment.

Will the Minister and the Department of Finance give this matter serious consideration? If necessary, he should meet a deputation to discuss the problems of the association. In my constituency there are a number of the association's establishments, including the famous Heron's Cove Restaurant and Longueville House, which is owned by the O'Callaghan family who have given long and distinguished service in this area. They are very famous and have an entry in the Blue Book, which is valuable around the world in bringing tourism to this country and advertising the excellent cuisine we can provide.

I am aware the Minister has our tourism industry and our restaurants at heart. However, there is an anomaly regarding the availability of labour which is a high cost factor for the industry. Given that the industry is such an important growth area, I appeal to him to accept my suggestions and help the association on this issue. If he does not have enough information on which to act he might arrange a meeting with the association, perhaps with the Minister for Finance. Given that the Government is so concerned about high taxation levels, this may be the first reform it will introduce.

I thank the Deputy for raising this matter. The Deputy's comments may be more relevant to the Department of Finance. I will address this later.

In recent years the tourism industry has seen unprecedented growth in terms of its infrastructure, product development and job creation. The developments, initially triggered by the Operational Programme for Tourism, 1989-93, have been given a fresh impetus under the current operational programme. From a base of 67,000 in 1988, jobs in tourism reached a level of 91,000 by 1993, while the current operational programme projects an additional 17,250 direct tourism jobs by 1999, 11,750 in indirect and induced employment and a further 6,000 in construction and associated capital works. Direct tourism jobs are thus targeted to be 40,000 greater by 1999 than in 1993.

This unprecedented level of growth in employment has presented the tourism industry with a significant challenge in meeting the increased levels of recruitment required. In addition, the substantially improved performance of the economy generally places the tourism industry in a particularly competitive job market vis-à-vis other sectors of the economy, particularly those in service industries. Furthermore, the formalisation of the transition year within the second level education system is estimated to dilute the school-leaver population in the current academic year by 10,000 persons, while the falling birth rate will impact at school-leaver age by the turn of the century. Faced with these significant challenges CERT has expanded its extensive recruitment programme in 1996 and the indications are that CERT will maintain 1995 levels of trainees in 1996.

As I pointed out on numerous occasions, both here in the House and at various other gatherings, the tourism industry must take an increasing share of responsibility for its own development. With regard to recruitment, the tourism industry needs to be particularly innovative in the job and career packages it markets at potential entrants to the industry, whether from the school-leaver or adult populations. In addition, negative perceptions, such as the lack of career progression for employees, low pay and long hours of work, which may divert aspiring tourism workers from the industry must be addressed. I cannot emphasise this too strongly.

The CERT research report on successful recruitment and staff retention in tourism, launched by me last month, sets out clearly the factors which need to be considered by tourism businesses in their approach to designing an attractive job and career package that leads to successful recruitment and retention of staff. While the report highlights factors that need to be addressed, it is encouraging that many positive perceptions are held by both employers and employees in the industry. While this report helps to chart the way forward for the industry, it is encouraging that the industry representative associations, such as the Irish Hotel's Federation, the Irish Hotel and Catering Institute, the Irish Country Houses' and Restaurants' Association and individual businesses in tourism are already conscious of the increasingly competitive staff recruitment environment in which the industry finds itself. There is an acceptance that more needs to be done and it is heartening that the industry recognises it is ultimately responsible for securing and retaining the highly motivated and trained workforce it requires.

The Government is firmly committed to the development of the tourism industry as evidenced by the projected investment of IR£652 million in the Operational Programme for Tourism (1994-1999), of which IR£110 million has been allocated to tourism training by CERT and the Department of Education. Over the six year period, some 20,000 first time job-seekers will move from skilled programmes into jobs in tourism, while a further 9,000 graduates from adult programmes will be available for employment. In addition, a further 36,000 persons working in industry will be trained on formal training programmes or on flexible short-term training programmes.

Members of the Irish Country Houses' and Restaurants' Association can avail of CERT's services and training programmes in the same way as other organisations and businesses in the tourism industry. CERT seeks placement for its students through the various tourism industry representative organisations, including the Irish Country Houses' and Restaurants' Association.

Deputy O'Keeffe raised the specific issue of local employees, particularly married women. He mentioned a number of very fine establishments, including Longueville House which is referred to in the Blue Book. I commend that restaurant on its inclusion in such a specific category. It is of a very high standard and quality. It is known internationally and is good for the perception of Ireland internationally. I will take up with my colleague, the Minister for Finance, the specific issue of married women and will communicate with the Deputy in due course.

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