In recent weeks workers at Glen Dimplex in Portadown have been on strike for a pay increase of 27p an hour. It is ironic in a bitter way when one considers the fact one of its bosses is Martin Naughton, a billionaire ranked only ten days ago by the Irish Independent as the 11th richest man in Ireland. The 27p increase would bring these workers up to stg£8.70 an hour, in other words, the official UK poverty line.

In this State, workers' wages are nothing to write home about. Hundreds of thousands of working people here are earning less than the €11.90 living wage rate. The programme for Government references reducing poverty levels by increasing the minimum wage to €10.50 per hour over a five year timeframe. Will the Taoiseach agree that this plan, already inadequate from the get-go, has been overtaken by the skyrocketing cost of accommodation and that next year, rather than keeping the minimum wage below the €10 per hour rate, it should be increased to the living wage rate at a minimum?

The programme for Government does not talk about reducing poverty; the Government is reducing poverty. One needs only look at the CSO survey on income and living conditions to see that is the case. The budget recently agreed in this House, which the Deputy will probably vote against, further reduces poverty, as confirmed by the ESRI SWITCH model. This Government led by Fine Gael and involving Independents is taking action across pay, tax and welfare to reduce poverty. The Deputy's party is voting against this. It is important everyone knows that basic fact.

In regard to the minimum wage, it will rise to €9.80 per hour in January. This will be the fourth increase in the minimum wage in the past five or six years. This is being done on the recommendation of the Low Pay Commission, which takes everything into account. The calculations done in respect of the living wage, as the Deputy knows, do not take into account that people have different circumstances and do not listen to employers. When it comes to setting the rate for the minimum wage, we need to balance the need to pay people a decent wage with any impact this may have on unemployment. The Deputy mentioned Portadown in particular. It should be borne in mind that along the Border counties employers and people compete for jobs and work with people just over the Border in Northern Ireland where salaries are much lower. We always have to bear this in mind. We are increasing the minimum wage but in a way that increases people's pay but does not threaten their jobs.