Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

Independent. Data on the impact of the last rise in the national minimum wage to €9.15 has not yet become available. The national minimum wage affects many small Irish businesses in the retail, hospitality and food sector which often operate in rural areas and whose profit margins can be very low. These were the aspects that were taken into consideration. The Low Pay Commission looked at the impact of a rise in the national minimum wage on Border areas where the recovery has been slow. Sterling exchange rates may have a particular impact in these areas. It also gauged the impact of Brexit on certain sectors like retail and hospitality. I understand that the setting of the national minimum wage divides opinion. I would have liked if we could have given €10 or €20 but that is not what happened. When the Low Pay Commission discussed the national minimum wage, it was about achieving the right balance for the circumstances. It is important to make the right decision for the country. This Government has stated that we support increasing the national minimum wage to €10.50 by 2021 but the programme for a partnership Government states clearly that the Government will rely on the annual recommendations of the Low Pay Commission in respect of the level of adjustment each year. We must now decide if we accept the expert recommendation of the Low Pay Commission based on its analysis, its public consultation and its meetings with all interests. The Low Pay Commission has stated that incremental increases in the national minimum wage do not harm growth. A sudden sharp increase may harm growth and employment levels. It was an independent decision.