The political storm over Gama Construction is set to intensify with the Labour Party today demanding a Dáil debate after it revealed the firm had received exemptions from paying PAYE and social welfare contributions.
Party finance spokesperson Joan Burton said the Government had many questions to answer over exemptions for 1,416 non-national workers employed by the Turkish-based firm.
It emerged last week that nearly 1,000 work permits were to Gama Construction since January last year despite a ban on the issuing of such permits for building workers.
Ms Burton said responses to Dáil questions revealed tens of millions of euros in deductions may have been lost. The exemptions appear to be an abuse of EU regulations allowing people from EU states working here for less than 52 weeks to continue paying social insurance in their home country, she said.
"The Government must outline the circumstances in which these exemptions were granted and whether or not any examination was carried out by the relevant Government Departments before the granting of the exemptions."
"It also means that Irish firms employing people as direct employees or on a sub-contract basis would be at a severe competitive disadvantage as compared with an employer who could effectively opt out of both the Irish PRSI and PAYE system," Ms Burton said.
"The fact that GAMA is a major contractor for public work contracts makes the situation even more disturbing," Ms Burton said. She called for a Dáil debate on the issue.
Gama became embroiled in controversy in February when Socialist Party TD Joe Higgins accused it of making employees work "grotesque" hours for between €2 and €3 an hour.
The department's labour inspectors have since completed an investigation, but the company secured a temporary High Court injunction preventing publication of their report.
Meanwhile Gama workers continued their series of protests at the opening of a new ESB station in Lanesborough, Co Roscommon. Gama was subcontracted to work on the building of the station.
Speaking at the opening of the plant, the Minster for Finance Brian Cowen said he was hopeful that the workers would get fully paid for their work.
Gama obtained a High Court injunction preventing publication of a report by the Department of Enterprise, Trade and Employment labour inspectorate into the affair.
The Court will give its ruling tomorrow on whether the report can be made public. A four-day hearing on the application concluded today.
The injunction, if granted, will continue until the hearing of judicial review proceedings brought against the Minister and the head of the inspectorate, Edward Nolan. Gama is contesting the minister's powers to direct an investigation, saying he only had powers to order a prosecution.