THE proposed legislation on the 48-hour working week could seriously damage Ireland's efforts to win US investment, a group representing the major US companies has warned.
In a submission to the Dail committee considering the proposed Organisation of Working Time Bill, the US Chamber of Commerce states that the lack of flexibility in the Bill could erode many competitive advantages considered by US multinationals when deciding to locate in Ireland.
The chamber represents more than 400 US companies employing 60,000 people here, including Intel, Hewlett Packard and IBM.
The legislation, which would set a 48-hour limit on the working week for most employees, goes to Committee Stage next week, with other business groups also expressing serious reservations.
A submission from the US Chamber, seen by The Irish Times, states: "It is no exaggeration to say that the lack of flexibility in this Bill could represent the single most negative change in Ireland's flexibility to win US direct foreign investment that has happened in the past 20 years, and at a time when that investment is at an all-time high."
A spokeswoman for the lobby said its concerns are broadly similar to those previously raised by IDA Ireland chief executive Mr Kieran McGowan.
He had warned, in a letter which IDA Ireland later withdrew, that the proposed legislation would make it more difficult for the organisation to attract international projects to Ireland, while creating problems for multinationals already here.
The US Chamber of Commerce's submission to the committee echoes Mr McGowan's original letter, saying the Bill's lack of flexibility fails to take account of seasonal demands and makes no provision for the fact that many US firms here are providing services over different time zones.
A letter signed by Mr McGowan sent to the committee in January warned the Bill could create an image of other states, and in particular Britain, as being more "company friendly" than Ireland. As disclosed by The Irish Times yesterday, this letter was withdrawn last week.
Despite Opposition claims yesterday that the letter was withdrawn in response to pressure from the Government, IDA Ire land has claimed it was sent "in error".
The Minister for Enterprise and Employment, Mr Bruton, has dismissed opposition claims that he put pressure on IDA Ireland to withdraw its objections to the adoption of the 48-hour working week legislation which is being introduced by the Minister of State, Ms Eithne Fitzgerald.
A spokesman for Mrs Bruton said yesterday the Department had no input into the IDA's decision to withdraw the three-page letter to the Dail committee.
Progressive Democrats leader Ms Mary Harney had called on Mr Bruton to state whether pressure "of any kind" had been put on the IDA to change its stance on the Organisation of Working Time Bill. Ms Harney said it was "extraordinary" that a letter written by "an able and experienced" chief executive would have been written in error. She asked why it had taken three weeks for IDA Ireland to withdraw the letter.
Fianna Fail spokesman for labour affairs, Mr Tom Kitt, said he was "convinced" that Mr McGowan had come under political pressure to change his view on the proposed legislation. He said Mr McGowan's original letter was "refreshingly honest and convincing" and had left Dail committee members in no doubt that the IDA was seriously concerned about the impact the proposals would have on attracting international investment to the Republic.