Ms Maeve McElwee:

On the concept of the living wage and how it would be applied in areas in which we typically look at the issue of low pay, there are many definitions. It is not a new concept, but it is very much a current topic for discussion. Internationally, there has been no ability to define exactly what a living wage should be. Looking at the work to which Dr. Collins referred, the technical group is still looking at 28 versions of a living wage, depending on the construct of the family and the location in which somebody is living.

There is the idea that the living wage could fall once it had been implemented, but that is not really a practical assessment because, in reality, no employer would be in a position to reduce a wage once the concept had been implemented. The idea of the living wage does not address the reality in the labour market. The family wage which has been constructed on there being mostly a sole male breadwinner does not recognise the position of women in the labour market and the flexibilities required by different cohorts in the labour market, nor does it deal adequately with dependants within the family. When we look at how we would implement something along the lines of the living wage and making it reasonable and decent, it is entirely impractical for employers to be able to manage this. They pay wages which are competitive and sustainable for their businesses. As we have seen, over the course of 2014 and into this year, more employers are predicting pay increases where they are affordable. This leads to greater productivity and competitiveness because employers and employees together drive competitiveness to achieve these wage increases. When we look at some of the sectors that are typically seen to be low pay, we look at the retail sector and talk about some big retailers which do not pay well and do not pay decent wages. However, if one looks at the data, most of the big retailers do not have anybody working at the national minimum wage rate.

When we talk about those on low pay having difficulties in achieving greater pay rate, we are back to the areas about which Mr. O'Brien spoke.

We are looking at Donegal in terms of small employers challenged with work crossing the Border, for example, retailers and hoteliers who constantly have a price pressure between where they are operating in a very small environment and the competitive rate they face just across the Border.

The issue of introducing a living wage is a voluntary concept. It still has its own problems and would bring into play its own workplace relations issues, but it does not resolve the issue of low pay because, in effect, employers who can afford to pay it will do so without it necessarily needing to be guided one way or the other. Those who cannot afford to do so will still have to fall back to what is a commercially sustainable rate of pay for the business they are in.