Address by Mr. Tom Kitt T.D.Minister for Labour, Trade and Consumer Affairs,at the Irish Retail Convention 2001, in the RDS Main Hall Complex, Wednesday, 23rd May, 2001

Good morning Ladies and Gentlemen. I would firstly like to thank the organisers Shelflife Magazine for inviting me here today to speak at the Irish Retail Convention Conference. This conference provides an excellent opportunity for key figures in the grocery and other retail trades in Ireland to meet, exchange ideas, learn and ultimately profit from changes and advances in the retail marketplace.

The retail sector contributes enormously to the Irish economy. It accounts for 11% of total employment in the economy and plays a critical role in sustaining competitiveness. A recent Forfas report on the Dynamics of the Retail Sector concludes that the sector can be expected to continue to grow in line with the overall growth of the economy thereby providing further employment and an increasing contribution to economic activity.

Your sector is facing many challenges today - the problems posed by a tightening labour market and the need to attract labour, the forthcoming introduction of the EURO, the problems posed by the increasing use of ICT’s, and new ways of selling. You must also respond to the changing demands of the consumer, increased competition, and continued internationalisation. This Conference is an excellent forum in which such issues can be discussed.

The Forfas report suggests that the major responsibility for the development and growth of the retail sector lies with the industry itself and its representative agencies with the state mainly providing a facilitating and enabling role. Conferences like this, and the surveys which are being discussed are important in raising awareness of key issues. I would like to compliment Shelflife on this conference and ongoing awareness raising.

I look forward to receiving the report of the findings of the independent survey on staffing, wage inflation and attitudes to non-national labour and also the salary survey which you have commissioned - both of which I believe are to be presented later this morning.

The Government has in place a comprehensive strategy to meet the labour market challenges faced by our growing economy. Key elements in the overall policy mix include fiscal measures aimed at enhancing the attractiveness of taking up a job and remaining in work. Our active labour market programmes assist those currently unemployed and particularly the disadvantaged in their transition to employment. We will ensure enhanced placement of job seekers and focus on measures aimed at upgrading the skills of those at work.Our interventions will continue to facilitate enhanced labour force growth and especially encourage increased participation of females in the labour market. This strategic approach aimed at mobilising fully domestic labour supply is being augmented with measures aimed at attracting immigrants to our growing economy.

My colleague the Tánaiste, Mary Harney recently announced a £13.9 million ( € 17.65m ) labour support package as part of the 2001 Estimates. The package includes a £50 ( € 63.49 ) per week per child allowance for people seeking training to help them back into the workplace. Significant incentives to help apprentices and to encourage the employment of disabled persons are also included. We must seek to facilitate inclusion in the workforce of all those who want to work.

Government policy has sought a number of ways to make it attractive for women to take up or return to paid work. Since 1997 some 200,000 women have taken up jobs. However, the lack of suitable childcare facilities and childcare costs are major disincentives for women seeking employment, and particularly so for women who wish to avail of FÁS training programmes to help them along the way. For women who have been out of the workforce for a long time retraining is a prerequisite to accessing many of the available jobs. The FAS Return to Work Programme has been very successful in this regard with some 1650 women trained in 2000. A further £600,000 ( € 761,842.85 ) has been allocated to fund an additional 200 training places in 2001. The allowance of £50 ( € 63.49 ) per child per week towards childcare costs will be of substantial benefit to participants on training programmes.

In spite of the improved employment situation in recent years, many people with disabilities experience difficulties in gaining access to, and remaining in, employment. At a time when many employers are finding it difficult to fill vacancies, there needs to be a recognition that people with disabilities can contribute to meeting the current skills shortages in many sectors.

Additional funding of £1.2 million ( € 1,523m ) has been made available through FAS for the Supported Employment Programme and to test new approaches to employment and training of people with disabilities. The Government is committed to further developing education and training measures, thus ensuring that the skills levels of the working age population are continually upgraded within an overall framework of lifelong learning. The National Training Fund has been established as a new resources base for training of people in employment and for employment.

We will continue to look overseas to meet labour and skills shortages and build on the enhanced effectiveness of our work permits and work authorization/visa systems. Net outward migration of the early 1990s has been replaced with net inflows, of the order of 20,000 per annum over the last three years of whom approximately 80% are from EU member states or returned Irish emigrants. Over 18,000 work permits were issued last year to non-EEA nationals. In addition, the new working visa/authorisation system and the substantial initiatives being implemented by FAS, including JobsIreland, all represent important measures aimed at tapping into additional sources of labour supply.

Firms have a key role to play. To attract people back into the workforce individual firms need to continue to develop family friendly initiatives such as the introduction of flexible hours or patterns of work such as flexitime or job sharing, and the availability of crèche facilities on site. Jobs can be made more appealing by offering such initiatives as well as the offering of non-pay benefits such as share option schemes, and the provision of training. Family-friendly working arrangements are in the interests of employers and employees. They will help you retain your staff, reduce absenteeism, improve productivity and leave you with a more highly motivated workforce. Firms must aim to be employers of choice, an important factor in the current tight labour market. Employees on the other hand benefit through having greater opportunities to better balance their working and family lives, greater equality of opportunity between men and women, and a fairer sharing of family responsibilities between men and women.

Employers of choice value and respect their workforce and refrain from any form of exploitation. Ireland’s Employment Rights Legislation establishes the minimum statutory rights applicable to everybody working in Ireland whether part-time or full-time, high or low skill or whether they are Irish citizens or otherwise. Everyone is entitled to the full protection of Irish Labour Law.

I am absolutely determined that Ireland’s reputation as a welcoming and hospitable place to live and work will not be damaged by the exploitative activities of a tiny minority of employers. Allegations of breaches of employment legislation, such as excessive working hours and non-payment of national minimum wage or holiday pay, will be thoroughly investigated by the inspectors of my Department and legal proceedings will be instituted against those employers found to be in breach of the legislation.

A particular emphasis will be placed in the current year on the inspection and investigation of abuses of immigrants with the objective of reinforcing Ireland as a location of choice. The continuing attraction of overseas workers is vital in assisting us respond to a radically changed labour market in which we find ourselves.

The EMU Business Awareness Campaign managed by Forfás aims to provide you with the information you need in preparing for the changeover to the euro. I urge you to avail of all available assistance. An example of just one useful tool being made available by the Euro Changeover Board of Ireland is "eurofloat" a software tool which will help you calculate your euro cash requirements for 1 January 2002. It is vital that maximum use is made of all available tools.

Dual Display will form an important part of the familiarisation process for consumers. As retailers, you have a key role to play in ensuring fairness, clarity and accuracy in dual pricing of products in Irish £ and in euro. I consider that voluntary - but binding - codes of practice provide consumers with reassurance and protection and businesses with the flexibility to meet their obligations with the minimum of disruption. Businesses can sign on to either the National Code on Euro Changeover prepared by the Office of the Director of Consumer Affairs, or alternatively, to sectoral codes which have been approved by the Director of Consumer Affairs.

In the changeover to the euro, staff training will be of vital importance to ensure customer’s queries can be dealt with and that the period of dual circulation is well managed, particularly in retail stores and other retail establishments.

Dual displaying prices and not using the changeover to increase prices is crucial not just for the success of your own business but also for the success of the changeover.