Fine Gael National Press Office Press Release

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Gov't permit rules will force migrants onto dole & into black economy- Naughten

The Government's plans to change the work permit rules will force many migrants who are currently contributing to the economy into the €3.5bn* black economy and trap many more migrants in dole queues at an additional cost to the taxpayer of €200m per year according to Fine Gael Spokesperson on Immigration & Integration, Denis Naughten TD.

"While the review of the work permit rules and the new labour market tests are welcome and long overdue, considering that changes have not been made for the last three years during a time of dramatic change in our economic circumstances, it is important that these changes improve the situation, not make things worse.

"The new and stricter conditions that are being placed on migrants wishing to come to Ireland are to be welcomed, but why did the Government not implement this measure 12 or 18 months ago? Rolling renewals and spousal permits into these new conditions, however, will actually make the situation worse in some areas.

"For example, the changes to the labour market test and fees for current work permit holders won't create any additional jobs for Irish people, but it will force many of these migrants, through no fault of their own into the black economy, which is already estimated to be costing the taxpayer €3.5bn. Furthermore it will serve the Government's purpose in that it will give the political impression that something is being done to address the work permit issue.

"The situation will also compound a problem faced by many migrants currently on the dole, who now have to come up with €2,250 to pay for the work permit fee, just to get off the live register. Fine Gael had proposed that by removing this barrier, migrants, who are legally entitled to PRSI social welfare payments would be given the opportunity to secure a job during the period up to the expiry of their work permit, thereby reducing the overall social welfare bill and contributing to the economy.

"The reality is that the vast majority of migrants, like their Irish hosts, don't want to be on the dole but are forced into this situation in many cases due to foolish Government rules.

"It should also be pointed out that the total number of people we are talking about is 1.5% of the workforce, namely migrants from outside the EU, so this move will go no distance to impacting seriously on the overall number of jobs available but with sensible changes to the work permit rules as much as €200m in social welfare and lost taxes could be saved.

"While these changes will address the issue of new work permits being issued and should be welcomed, it also sends out a clear message to skilled migrant workers that if the come to Ireland to fill key posts, that their job is not secure if a citizen from an EU country wishes to take it, when the time comes for renewal.

"If this Government was serious about job creation, then it would take on board Fine Gael's plan to create 100,000 new jobs in the area of the green economy, where many of the required skills can be sourced locally."
Ends
*ISME study from August 2008 estimated the 'value' of the Irish black economy at €17.7bn, or 11% of GNP, with an attendant loss of €3.5bn in taxes foregone by the State.