Monday, 22nd, February 1999

STAFF SHORTAGES NEED SOLUTIONS NOW
IHF Chief Executive tells Annual Conference

The Chief Executive of the Irish Hotels Federation (IHF) has called on the Government to implement recommended tax incentives to encourage those in a position to return to the workforce to do so.

Speaking on the eve of the IHF annual conference in Bundoran, Mr Power outlined that although skills shortages are being experienced across all industries, access to additional pools of labour in Ireland is possible. With the right polices in place people would re-enter the workforce on a part-time or full time basis. These identified pools of labour force include homemakers or farming families wishing to augment their incomes.

"The Department of Agriculture is currently working on a white paper on rural inclusion. We would hope that employment in tourism is identified as a supplementary source of income for farms. Our industry would obviously be delighted to have access to this pool of labour. Considering we are the only sector that provides employment in every town and city in the country, issues of relocation for those who would otherwise have to seek employment elsewhere doesn't arise," says John Power, Chief Executive, IHF.

The IHF maintains that an additional 40,000 people could also re-enter the workforce if their recommended 'Homemakers Revenue Job Assist' proposal to grant a special £2,000 per year tax free allowance to qualifying people, were put in place. This combined with the PAYE allowance would allow £2,800 per annum to be earned, without being subject to tax or the loss of existing social welfare and other entitlements. It would be an extremely attractive option to anyone thinking of taking up paid employment. The IHF estimates that it would cost the state IR£5.2 million assuming a take up of 10,000 people. This compares with a contribution to the exchequer of IR£84m from the additional tourism spend generated by such increases in the workforce.

"Ireland has the lowest level of female participation in the workforce in the EU and that's a huge loss because of the special talent women have in communicating with people and making them feel at ease. Women in our sector account for over 50% of total employees, with over 42% of management being women. They are a tremendous asset to our sector and when working in an area where they live, they offer tourists terrific insights into the local area. We would welcome any initiatives that would enable those who wish to re-enter paid employment to do so. We know the Minister for Finance is considering our Homemakers Job Revenue Assist proposal very seriously and we look forward to his decision shortly," says John Power.

The IHF welcomes the recent childcare expert committee report, and implementation of the report's recommendations could release up to 40,000 additional people to be in a position to take up paid employment.

"The misconception that our sector is low paying - is simply that - a misconception. Hotels and guesthouses have to compete in an arena of virtually full employment. It has to pay market rates to get the staff it needs," continues John Power.

"Also, the desire of people from abroad to work in our sector is to be welcomed. It is a practice that has always been associated with the hospitality sector where Irish people have continuously gone abroad to work in other countries for a year or two to gain international experience. Foreign staff bring special insights and values to our premises, and through good management practices and our Quality Employer Programme, integration and many benefits to guests and staff alike can accrue, " concludes John Power.

This year's IHF AGM was sponsored by American Express.

FOR FURTHER INFORMATION:
Siobhan Molloy/Ciara Sweeney
Tel: (086) 817 50 66 or (086) 8262280.
IHF Press Office, Great Northern Hotel