Oireachtas Joint and Select Committees

Tuesday, 24 March 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

General Scheme of the National Minimum Wage (Low Pay Commission) Bill 2015: Discussion

1:30 pm

Mr. Mark Fielding:

Well seeing as I started it I suppose I should. How can we measure it? All we have to do is go back to 2000 when the minimum wage was brought in and measure it along that line up to 2007 and further along, measure the increases in minimum wage at 55% and measure the increases across the economy, which rose by something in the region of 52% to 54%. It would be quite easy to see the relativity knock-on where people thought the minimum wage was a great idea back in 2000 and did not see the effect it was going to have on other wages up along the line - but we saw it at the coal face and I believe the figures prove it. The figures rose across the whole economy at roughly the same level.

Regarding the increase in minimum wage versus twice the PRSI - depending on the level, I believe the increase in the minimum wage will have a bigger effect because of that relativity. The doubling of the PRSI, adaptable for specific sectors, had a major effect. It had a major effect on new employment. There was a stop put on employment. I am sure many of my colleagues can talk in terms of that, we certainly would have seen that.

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