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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Labour shortages and business pressures

Summary

Deputy O'Donoghue raises labour shortages in construction, haulage and hospitality, and then presses on forestry licences, carbon tax, inflation and Brexit-related costs affecting businesses. The Tánaiste argues the Government is not responsible for Brexit, says environmental decisions are being addressed, and notes support grants are available to help firms manage customs and related rules.

Given that more than 50% of the population have received their first vaccine, I would like to think that we are now in a post-pandemic place and looking forward to what lies ahead for us. I have concerns, however, that I will highlight. I am sure the Tánaiste will agree that it is currently very difficult to get staff in construction, haulage, hospitality and in many other industries. Surely the apprentice scheme needs to be escalated and a system put in place. Industries such as haulage have huge concerns around getting drivers into the future, due to the delays at the ports. It is the same for other industries.

My next concern is around the 2040 plan.

The 2040 plan was introduced by the Tánaiste's Government in July 2018. I want the people of Ireland to know the Tánaiste, and Fianna Fáil and the Green Party, his coalition partners in Government, are now responsible for 33% of the escalating costs for people in rural housing due to the shortage of materials coming into the country. I want them to know that Fine Gael, Fianna Fáil and the Green Party are responsible for 33% of extra costs. Imported goods since Christmas, including steel, timber and hardware goods, have risen by between 30% and 40%. Rather than stating the obvious, such as that the goods are coming from eastern European countries and we cannot control the prices, start with the obvious. For example, simplify the process in Dublin Port when bulk goods arrive into Ireland. There are huge delays in the docks getting general cargo through. There are four systems that must be dealt with, namely, customs, agriculture, the HSE and Revenue. None of their systems speak to each other. Huge delays in the docks cost thousands of euro per day. Everything is chock-a-block there. This needs to be looked at as a matter of urgency. I have spoken on many occasions about the bureaucracy caused by Brexit. Surely, six months in, we would think there would be a better system in place.

In his remarks to another Deputy, the Tánaiste said more than 50% of the people in Ireland are employed by SMEs and 37% of people live in rural Ireland. If the Tánaiste was serious about protecting the SMEs and rural areas, he would have accepted the amendment from the Rural Independent Group but Fianna Fáll, Fine Gael and the Green Party voted against it. Now the knock-on effect is 33% more costs for people because of the panic in place to try to get applications in because of the 2040 plan. If the Government had accepted the amendment tabled by the Rural Independent Group it would have helped with the current chaos.

Comment on this
Leo Varadkar The Tánaiste Fine Gael

I thank the Deputy. In a few months' time, provided the virus does not surprise us again, we will be in a very different place as an economy and society. We will see a really rapid recovery in our economy due to Government investment, pent-up demand and deployment of the €12 billion or €14 billion in savings now in our banks above where we were in 2019. We will find ourselves in a place in a few months' time where we will still have hundreds of thousands of people in receipt of welfare payments of working age but at the same time hundreds of thousands of vacancies in the labour market, particularly in areas such as construction where we need to build so much, from houses to public infrastructure, in areas such as care where we need so many more people to work and in areas such as technology, digital, pharmaceuticals and others. This will be an enormous skills challenge and the Government is wise to it. We have 10,000 apprenticeships, 10,000 work placement schemes, 50,000 new education opportunities and a new Department driving the agenda and making sure we match people to jobs and that they have the skills necessary.

With regard to the cost of materials, I cannot accept the Deputy's contention that somehow the Government, Fianna Fáil, Fine Gael and the Green Party are to blame for the rising cost of steel, timber and building materials because it is just not true. It is an international phenomenon. It is on the front page of international newspapers, including the Financial Times. The cost of all of these materials has increased throughout the world. Perhaps delays at the port may be contributing to it in some way and I am happy to look into that and see whether we can improve it but this is very much a global phenomenon. If the Deputy read the international press he would know this. Why is it happening? There are many different reasons. Government spending is rising throughout the world. Not just this Government but other governments throughout the world are engaging in a construction boom or building infrastructure and this is driving up the cost of materials. The disruption of the pandemic has resulted in fewer materials being produced in some parts of the world. As well as this, there are delays in distribution. Of course, there is also cheap money. Central banks are printing money and giving out cheap loans to business and government. When this happens we have inflation and the price of things that cannot be printed, such as steel, property and building materials, increases. This is what is happening. Yes, it is a big problem and if there is anything we can do about it in terms of improving matters at the port we will, but to suggest that somehow it is caused by three political parties in Ireland and that we have the power and influence to increase global steel prices really is absurd.

Comment on this

The first thing the Government did wrong was the felling licences, the second was the carbon tax and the third was voting against the amendment tabled by the Rural Independent Group on the 2040 plan, which would have delayed the process of houses. Now people are panicking and this is putting more pressure on supply and demand. I thank the Tánaiste for his thoughts but I do not want empty promises. As with everything else, the Tánaiste always says he will get back to us but it does not happen. On the truth of the matter, I will give two instances, one relating to myself and one to another business. When £600 worth of uniforms for the hotel industry came into this country Revenue looked for €400 duty. I have stuff coming in to help with outside dining for customers and it has been held up in the port for a week due to one side not talking to the other. These businesses are due to open for outside dining on 7 June. This is the reality. The Government does not have a clue about the reality because it seems to be in a bubble.

Comment on this
Leo Varadkar The Tánaiste Fine Gael

Let me burst the Deputy's bubble again. The Government is not responsible for Brexit. Brexit is something that happened when the people in the United Kingdom decided they were going to leave the European Union and it has consequences. It has consequences in terms of checks on imports into this country and on the taxes that must be levied.

Comment on this

What about the felling licences and roofs of houses?

Comment on this
Catherine Connolly An Leas-Cheann Comhairle Independent

Allow the Tánaiste to respond.

Comment on this
Leo Varadkar The Tánaiste Fine Gael

The Deputy knows this was down to a decision made on environmental grounds in the courts and the Government is now responding to it.

Comment on this

Carbon tax, inflation, oil products.

Comment on this
Catherine Connolly An Leas-Cheann Comhairle Independent

Allow the Tánaiste to respond.

Comment on this
Leo Varadkar The Tánaiste Fine Gael

It is a definite feature of the House that when people have to hear the truth or the facts they get animated and start shouting. Apparently, according to the Deputy, we are responsible for Brexit and the taxes that accrue as a consequence of it. Quite frankly, businesses have a responsibility to make sure they know what the rules and regulations are. We provide a grant to businesses of €8,000 at year to help them figure out customs. I would be interested to know whether the business referred to by the Deputy has availed of this. It has had two years to do so and it should have.

When it comes to the price of steel and materials, as the Deputy should know it is a global phenomenon and is happening throughout the world for the reasons I have explained. When it comes to the felling licences issue, I absolutely accept we have a problem and the Minister of State, Senator Hackett, is working on it as hard as she can and she will come up with a solution. It was down to a court case and not one that we wanted.

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