We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil
‹ An tOrd Gnó - Order of Business

Low pay in hospitality

Summary

Deputy Ó Ríordáin urged the Taoiseach to use the VAT cut to press hospitality employers to improve pay, citing widespread low pay in the sector. The Taoiseach said the VAT extension would support workers and employers and agreed that better pay and conditions were necessary.

The Taoiseach may be aware that the Labour Party is running a campaign demanding a pay rise for Irish workers. The Taoiseach announced that the VAT cut of 9% will remain for the hospitality sector until February 2023. The number of workers in that sector on the minimum wage is three times the national average so it is a low-pay sector. As we constantly remind the Taoiseach, 23% of Irish workers are on low pay. We are the third highest in the OECD when it comes to the proportion of low-paid workers. The Taoiseach should engage with employers and tell them that the payback for continuing with the 9% VAT rate is their engagement with the joint labour committees to ensure their workers are properly paid. We cannot stand over a situation where the Government is gifting employers a 9% VAT rate but they still stand over a system of poverty pay.

Comment on this

Generally, the intention of the extension of the 9% VAT rate until February 2023 is a good thing for workers and employers in the hospitality sector because this sector took a significant hit during Covid-19 over two successive years. In respect of joint labour committees and proper pay, I accept fully the Deputy's point about ensuring good-quality pay in that sector as well. This will be necessary because of labour shortages in that sector. More important, providing good-quality pay and conditions to people in the sector is a basic way to proceed and operate. We want to create opportunities for people with a genuine career interest in the hospitality sector.

Comment on this