Low Pay Commission recommendations
Mick Barry criticises the Low Pay Commission’s minimum-wage recommendations and asks about the Government’s legislative and budgetary process; the Taoiseach defends the commission and says its report will be discussed.
As the Taoiseach is aware, the Low Pay Commission issued its report and recommendations yesterday. The recommendations show that the commission's name is apt and well-earned. It is, indeed, the low pay commission. In any case, there has been talk in recent times of leprechaun economics and here it is - pots of gold for tax-evading multinationals and insulting pay recommendations for the little people.
I have a question on promised legislation as follows. My understanding is that there is a requirement to amend minimum wage legislation in order to change the rates. Is the Government prepared to reject this recommendation and go for something which would take low-paid workers out of poverty? These are poverty pay rates, so is the Taoiseach prepared to go above that and settle on a rate which is far more in line with what low-paid workers need?
The House's budget committee-----
Comment on this
Is this issue the property of the budget committee? Does it have rights in terms of debating this issue?
Comment on this
The Low Pay Commission was set up by the previous Government to bring about a proper, structured and objective way of examining minimum wage recommendations. The Deputy will be aware that, before his time here, the previous Government reversed the cut to the minimum wage and increased it subsequently. The Low Pay Commission has made its recommendations, taking into account its view of the economic road ahead, including the consequences of Brexit.
Yesterday, the Government agreed to give approval for publication of the report, and I expect it will be discussed here. The Minister for Jobs, Enterprise and Innovation has three months to respond and will consider carefully this recommendation from the Low Pay Commission. The Minister will return here in September, as is required under law, in respect of the proposal she will make to Government arising from the recommendation of the Low Pay Commission.
There was also a minority report as part of the recommendation. The reason for establishing the Low Pay Commission was to have an objective, structured way of recommending increases. Work should be seen to pay, so it is important to have that incentive for people to go to work. Clearly, however, when one increases the minimum wage, it has a knock-on effect further up the line for those on low pay.