Address by Minister Micheal Martin at the Launch of the FAS “Know Before You Go” Initiative

at the Launch of the FÁS ‘Know Before You Go’ Initiative

Granting full freedom of movement

The full opening of Ireland’s labour market to the nationals of the 10 new accession states on 1 May 2004 already seems like a long time ago. This decision to grant full freedom of movement was a significant one. It illustrated in a very real way Ireland’s sense of solidarity with our new European partners.

This sense of solidarity comes from experience. Only twenty years ago we in Ireland were dealing with economic, budgetary and unemployment challenges similar to those with which our new European partners are coping today.

In the 1980s, Ireland had economic growth as low as 1 per cent, a debt to GDP ratio of over 100 per cent and unemployment of 17 per cent. As a result, Ireland was experiencing significant rates of emigration. In that decade as many as 65,000 people were leaving Ireland each year.

In the relatively short period since then - and partly as a result of our membership of the EU - Ireland has been transformed into a country with an economic growth rate of 4½ per cent, a debt to GDP ratio of 33 per cent and with unemployment of 4½ per cent.

As a result, the trend of migration has also changed, from one of emigration to where we how have significant inward migration. Indeed, in the twelve months to April 2005, 65,000 people migrated into Ireland.

The decision to grant nationals from the ten new Member States full access to our labour market has meant that Ireland is now a regional labour market of 2 million workers, which is a part of a much larger European Economic Area labour market of over 200 million workers.

Our experience since full labour market opening

Even before their accession to the EU, considerable numbers of people were travelling to Ireland from these ten countries to avail of better career opportunities. Before enlargement PPS numbers issued to citizens of the new Member States averaged less than 10,000 a year.

However, since Accession the numbers have increased dramatically. In the period since May 2004 over 150,000 PPS numbers were issued to nationals of the new Member States. Tax revenue data indicates that over 100,000 or about 70 per cent of these entered Ireland’s labour force at some stage.

Undoubtedly some of these were students who came for summer work and others seem to have come for short periods to avail of opportunities either in seasonal work or short term contracts.

However, there is no doubt that many others have found established and well-paid employment in Ireland. Some of them may intend to build a long-term career in Ireland.

Impact

What has been the impact of this significant inflow of EEA nationals on Ireland’s labour market?

Well, first of all there is no doubt that these workers have already made a contribution to Irish life. They have allowed our economy to grow more than it otherwise would have. In addition, since so many of them are working in the construction sector they have allowed us to remedy shortages in road and housing provision faster than we would otherwise have been able to do.

This has occurred without any significant negative effects on unemployment. The most recent figures show annual employment growth of 5 per cent or 96,000 jobs and an unemployment rate of 4.6 per cent.

Challenges

However, we do still have challenges to meet in the economic migration field and today’s initiative is only one of a series of steps we need to take.

First of all, we need to deal with the fact that not all of the EEA nationals who have come here are working to their full potential.

Recent studies show that Ireland is attracting more highly skilled immigrants relative to our population than other EU member states. Research based on the 2002 census of population revealed that over half of non-nationals working here have third level qualifications and a further 30% have completed second level. This research also shows that if Ireland had fully utilised their skills and talent GNP would have been 0.7 per cent higher during the five years to 2003.

So we need to help those who have come here from the EU Member States not only to find jobs, but also to get recognition for their qualifications.

I am therefore very pleased to see that as part of the `Know Before You Go’ initiative, FAS will be providing information not only on how to get a job, but also on how to establish if the job-seekers’ qualifications are recognized here and, if not, how to meet the necessary criteria.

The Europass initiative launched last month by the Department of Education and Science will also play an important part in helping people make their skills and qualifications easily understood.

A second challenge is that of ensuring that non-national workers in Ireland benefit from the full range of statutory employment rights and protections in the same way that Irish nationals do. This FAS initiative will also help us meet this challenge by including information on employment rights as well as basic information on accessing accommodation, the health services and on how to comply with the tax and social security systems.

New Economic Migration System

A third challenge is that of bringing in from outside the EEA those skills which we need to move our economy to one that is knowledge-based and innovation-driven, but which we cannot source from within the EEA. Towards this end I have recently announced a new green card-type system for highly skilled non-EEA nationals and a revised work permit system for occupations where the shortage is of labour rather than skills.

Conclusion

In conclusion then, I would say that we in Ireland have found that the full opening of our labour market to EU-10 nationals has been a positive experience and one from which our economy has benefited and I am confident that it will continue to do so going forward.

In this context, I would like to strongly welcome this `Know Before You Go’ FAS initiative which will help workers from the new EU Member States to prepare before they come to Ireland to work and will also help them when they arrive here.

I particulary welcome the measures included in the initiative to tackle language and cultural awareness deficits - not alone among potential migrants to Ireland, but among FAS staff as well.

It only remains for me to congratulate Rody Molloy and his staff on the work they have done to ensure that while we continue to benefit from the contribution nationals from the new Member States can make to our country, we ensure that their experience is a personally satisfying one as well.

ENDS

ETE 1479