I am a bit bemused by the attitude of Fine Gael to the National Minimum Wage (Protection of Employee Tips) Bill 2017. The Bill was introduced by Senator Gavan and passed by the Seanad. The Bill will be introduced in the House this evening during Sinn Féin's Private Members' time. It is a simple Bill that will outlaw the practice of employers using tips or service charges to make up contracted wages. I do not understand the opposition to the Bill given that the Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, whom I facilitated in meeting workers to discuss the issue, has given a commitment to legislate in this area. Is the Government playing politics and, if so, for what purpose? Is the problem with the Bill or just with the fact that it was brought forward by Sinn Féin?

When I first met a group of workers from The Ivy restaurant on Dawson Street I was shocked by what they told me. It was not just a question of low pay and not receiving their tips; there was a complete lack of respect for the staff on the part of a very aggressive employer. There were even CCTV cameras in makeshift staff changing rooms. They have since been removed but there is evidence of ongoing surveillance of staff, both audio and visual. Due to the publicity surrounding The Ivy, customers are asking staff whether they will get the money if a service charge is paid. Staff cannot give a straight answer for fear of retribution or possible dismissal. I am more shocked now that some of these practices are widespread in the hospitality sector. A survey has shown that one in three workers does not receive the tips customers have given in recognition of good service.

This workforce is mainly young, with many migrant workers and students. They are not very aware of their rights in the workplace. For example, they often work long hours without a break and they are not aware there should be an 11-hour break between shifts. They are not unionised for fear of being dismissed. Two of the workers I met are no longer working in The Ivy and the matter is being pursued by their union. These workers' jobs are precarious. They do not have fixed hours and the minimum wage or slightly above it is the norm. Does the Taoiseach agree that this hardly describes a republic of opportunity, but rather a republic of the unacceptable face of capitalism?

There is also an issue with unfair competition. Employers who are treating their staff with respect are at an unfair disadvantage, particularly when confronted with highly profitable, multinational chains such as The Ivy. Passing this Bill would be a signal to employers that this sharp practice is unacceptable. More importantly, it would be a signal to some of the most exploited members of the workforce that they are not alone and powerless. Hopefully, it would encourage them to join a union and get organised. The Bill has widespread support in the Seanad and I look forward to the same level of support for it in the Dáil tonight. I hope it will be passed with the Government's support.

I thank the Deputy for raising this important issue. The Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, plans to legislate in this area. When customers leave a tip in a restaurant or bar they intend that the tip should go to the staff. We want to ensure that happens. The Minister, Deputy Doherty, will introduce legislation to amend the Payment of Wages Act to make it illegal for employers to use tips to make up employees' wages. Tips would have to be in addition to the statutory pay or wages people are being paid. In addition, she will introduce legislation to require employers to display, either in a notice on a wall or on a menu, their policies on tips, gratuities and service charges so customers of bars and restaurants know exactly what is happening to the tip, where it is going and, more importantly, what is happening with the service charge. That is the action we will take.

The reason we do not support the Bill being put forward is that we believe it will be counterproductive. While I am sure it was not the intention of the authors, the effect of the Bill would be to cause people's tips to be taxed-----

That is not true. It is a red herring.

-----and counted as income. Potentially, they could be counted against them when they apply for a medical card, social housing or things such as the family income supplement. I am sure that was not the intention, but that is our interpretation of the Bill. I will explain why that is our interpretation. The Bill changes the nature of tips. At present, in the vast majority of pubs and restaurants the tips are managed by the staff. This Bill would require the employer to manage the tips. That means they would go through payroll and become subject to tax and social insurance. It would therefore be counterproductive. I do not believe it is the intention of Sinn Féin or the left to cause workers to have their tips taxed-----

The Taoiseach's intention is to muddy the waters.

-----but that would be the effect of the legislation. That is why we do not support it.

First, the current position is that if one accepts tips one is supposed to pay tax on them to the Revenue Commissioners. This Bill does not change that, so the Taoiseach is throwing a red herring into this.

Second, we held a press conference today at which Julia, one of workers from The Ivy who is no longer working there, made an appeal to the Minister to support this Bill. The Bill deals with both tips and service charges. We know that when the Tánaiste previously made the point that tips cannot be used as part of a contracted wage The Ivy changed its policy in this regard. It changed its policy from credit card tips to a service charge of 12.5% on all tables, which was previously only on tables of five and above. It is using those service charges to pay wages. That is wrong. No customer who pays a service charge thinks it is going to line the pockets of the management. He or she thinks it will go to the server who served the customer well.

These are the crucial points that must be raised. It is not good enough that tips and the service charge be treated in the same way. Workers should receive their tips directly, not through the management.

The reason we do not think this Bill is a good idea is because we believe it could force staff working in pubs and restaurants to pay tax on their tips. I heard the Deputy say that she thinks they should pay tax on them anyway and I am glad she has admitted that in this House because that would be the effect of this Bill. It would put tips through payroll and staff would have to pay tax on them and they may have it counted it against them when it comes to applying for a medical card, the working family payment or social housing. She should not just believe me on this. This matter was examined by the Low Pay Commission, which unanimously came out against it, including the union representatives on the commission. In their submissions to the commission, the Green Party and Fianna Fáil Party also objected to this measure so the Deputy should not just take my word on it. She should take the word of the Low Pay Commission.

We are supporting it.

I am advised that Fianna Fáil did not support it a few weeks ago but what is new?

The Taoiseach, without interruption.

In terms of meaningful actions that will actually protect staff working in bars and restaurants, we will amend the law to prohibit employers from using tips to make up wages and will require employers to state clearly what happens to the service charge.

Could we all just calm down a bit?