National minimum wage submission
Deputy Dooley asks whether the Tánaiste supports Department of Finance caution about raising the minimum wage. She says the Low Pay Commission will make recommendations and that she will support an increase in low pay.
I had expected that we would hear about next week's order, but obviously that will be raised on Tuesday and we will deal with it in the normal course.
On the public sector standards Bill, a Bill from the Department of Finance, is the Tánaiste aware of a submission on the national minimum wage made by Department of Finance officials to the Low Pay Commission, which is due to deliberate shortly? As she is aware, the Department of Finance has warned that there are serious risks surrounding the increase in the national minimum wage. The submission stated:
The combination of a too-high cost base and a collapse in global demand had severe consequences for Ireland from 2008 on ... this suggests the need for a ‘competitiveness buffer’ to allow the economy absorb potential adverse shocks with as little impact on employment as possible.
The Department calls for a system to allow the minimum wage to be reduced in the future. Did the Tánaiste have sight of that report before it went to the commission? Was it discussed at the Economic Management Council, which generally now steers all matters relating to the economy through the Cabinet? On its submission, does it have the Tánaiste's full support?
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I am a bit shocked that Deputy Dooley seems to be so resoundingly in favour of the caution expressed by the Department of Finance about improving the minimum wage. I know Fianna Fáil reduced the minimum wage previously but I thought it might have changed its policy to recognise that as the economy progressed, low-paid workers should be in a position to benefit. That is why I have championed it. The proposal for the Low Pay Commission originated from my involvement in the election campaign for the leadership of the Labour Party.
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So the Tánaiste does not support this recommendation.
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-----in praising the Department of Finance proposing to cut the minimum wage. I am shocked that Fianna Fáil would propose that.
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I did not praise; I asked the Tánaiste if it had her support.
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There was a glowing approving tone in his voice. He just said that its recommendation was his recommendation.
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I am shocked. There will be Fianna Fáil people throughout the country desperately shocked at this.
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The Tánaiste should look at the transcript.
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Is the Tánaiste on the Economic Management Council?
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-----I made it my first job to reinstate the minimum wage. Fianna Fáil cut €1 an hour off it. Not since Ernest Blythe have we heard of anything as cruel done to very poor people as was done by Fianna Fáil on the minimum wage.
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The Tánaiste did not share the cruelty.
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I hear the Deputy now declaiming for the Department of Finance. Not a lot in politics surprises me, but this does. It was with regret that I heard it.
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Let me say that the Low Pay Commission has been established to receive submissions from parties that wish to make submissions.
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This submission was from the Department of Finance.
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I am asking the Tánaiste whether she supports it.
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I repeat that if the Low Pay Commission makes a recommendation to increase low pay and the current minimum wage, I will be giving that recommendation my support.
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Does the Tánaiste support the Department of Finance?
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I hope to see it implemented. The Department of Finance's submission is a matter for it-----
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Was it approved by the Economic Management Council?
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If she answered the question, we would not have-----
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The Department of Finance is entitled to have a view and express that view; we are not living in a dictatorship. Had the Deputy sought its views during the bank crash, when I believe it got a lot of things wrong-----
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Did the Tánaiste support some of those?
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Our submission already does. I am just concerned about the Government's. Times change, as the Tánaiste knows.