Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Gabhaim buíochas leis na finnéithe as ucht an cur i láthair suimiúil. Bhí sé an-mhaith ar fad. Everybody agrees that we have a problem with low wages in this State but how we actually resolve the problem is the issue. We know that there is also a problem with underemployment. We have one of the highest proportions of low-paid employees in the EU and OECD countries. Has any research been conducted on the level of unemployment created by increases in the minimum wage? In other words, in other jurisdictions, what is the typical correlation between a 50 cent increase in the minimum wage and unemployment levels? My understanding is that while the minimum wage is important, there are many other tools that the Government can use to alleviate poverty. Furthermore, while the minimum wage is important to an employer, in real terms and in the long run, it does not affect the level of employment or unemployment very much. As a committee, we like to operate on the basis of evidence. What evidence is available on those specific questions?

My understanding is that Ireland's income gradient is quite steep in comparison with other countries, where it is more level. Would that be an accurate interpretation? I take the point made earlier that to introduce GDP figures into anything in this country skews everything because there is such a large foreign element to the economy. It seems to me that both witnesses are making the argument that the State should be involved in welfare transfers but to my mind, however, the State is subsidising people on low incomes, as well as employers, with such payments. If the State took the €300 million to which Deputy Lyons referred out of the equation, many of the people who work for very small businesses would simply not be able to work for them anymore and if employers wanted to employ them they would have to pay them higher wages to make their efforts worthwhile.

Reference was made to Denmark taking a bigger chunk of tax from people on low incomes. Does that include taxes like USC, water charges, property tax and all of the other taxes that are charged in Ireland, many of which are not income dependent? We are very conscious that most self-employed people - especially the newly-self-employed - are living hand-to-mouth and that from month to month they are not sure if they can pay themselves an income. However, I am also conscious that some of the unemployment figures are skewed in terms of who is deemed to be self-employed. A person could be deemed to be self-employed who only works for one hour per week in a self-employed capacity. Would Mr. Coffey have any issues with regard to the precise nature of the self-employed figures?

On ensuring businesses remain competitive, is it not necessary for society to focus on all of the other cost bases affecting them, rather than wages? Wages should be the last place one looks at to guarantee cost competitiveness. For example, physical infrastructure represents a big cost, as do upward-only rents, utility bills, insurance bills and legal bills. All of these costs within the grasp of the State, if tackled, would improve the cost competitiveness of business. Rather than seek to target those on low pay, we should look at all of these other places first.