Gama still getting PRSI exemptions, FG claim

The construction company accused of exploiting migrant workers, Gama Construction, is still receiving PRSI exemption certificates…

The construction company accused of exploiting migrant workers, Gama Construction, is still receiving PRSI exemption certificates for some of its workers, Fine Gael said today.

Trade and Employment spokesman Phil Hogan told the Dáil that the company continues to avail of the scheme and remains the by far the highest recipient of certificates in the State.

Figures he obtained covering January to the end of May this year show Gama received 288 exemption certificates accounting for 92 per cent of successful applicants of the scheme operated by the Department of Social and Family Affairs.

Mr Hogan accused the company of "abusing the work permit system" and produced figures showing the company had received 67 per cent of all exemptions since 2002. The scheme exempts workers not ordinarily living in the State from social insurance payments for a period not exceeding 52 weeks.

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The Turkey-based company came to public prominence in February when Socialist Party TD Joe Higgins accused the company of using "bonded labour". He said it was paying less than half the minimum wage, intimidating workers, accommodating them in "company barracks" them and making them work "grotesque hours".

The head of the Labour Inspectorate at the Department of Enterprise indicated before the High Court earlier this year that "possible fraud" was part of its investigation.

Gama succeeded in a High Court action preventing publication of the Inspectorate's report - a decision appealed to the Supreme Court which has yet to make a ruling.

However, the court allowed the report to be circulated to relevant prosecutorial bodies including the Department of Social and Family Affairs; along with the Revenue Commissioners, the Office of the Director of Public Prosecutions, the Competition Authority, the Office of the Director of Corporate Enforcement and the Garda Commissioner.

Mr Hogan was critical of Gama continuing to receive certificates despite the controversy surrounding their treatment of workers. "This is an abuse of the work permit system and puts Irish companies at a disadvantage," he said.

Gama has been awarded State construction contracts worth over €200 million and Mr Hogan cited a tender it won for a road in Catleblaney as an example of what he says is an unfair advantage.

"Using the PRSI exemption in this manner allows foreign companies like Gama, which are competing with indigenous companies, to save up to 2 per cent on a tender contract," Mr Hogan said.

The Employment Permits Bill (2005) currently making its way through the Oireachtas could be "more law" without the necessary resources for enforcement such as more labour inspectors, Mr Hogan added.