Minimum wage increase
Deputy Howlin cited evidence that minimum-wage increases do not reduce hours, and the Taoiseach said the Government would raise the minimum wage to €10.10 if the withdrawal agreement is ratified.
For years we have heard the argument being trotted out that raising the minimum wage and giving low-paid workers enough money to make ends meet jeopardises jobs and is bad for business. However, this myth has been regularly debunked by organisations such as the OECD, the US Federal Reserve, the University of California at Berkeley and many others. In the Irish context, it has now been debunked by the ESRI in its analysis of the increase in the minimum wage in January 2018 from €9.25 to €9.55 per hour. The ESRI found that this increase had no effect on the average hours worked in the hotel and food industries, where the majority of minimum wage earners work. Will the Taoiseach give a commitment to the House, in the run up to Christmas, that in the event of a deal being signed on Brexit his Government will immediately sanction the increase in the minimum wage recommended by the Low Pay Commission?
Comment on this
The short answer is "Yes". However, I would say ratified rather than signed because there is a difference there. Should the withdrawal agreement be ratified, the Government will implement the Low Pay Commission's recommendation to increase the minimum wage to €10.10 per hour. That will be the third increase in three years by this Government and will mean that we have the sixth highest minimum wage in the world.