Oireachtas Joint and Select Committees

Wednesday, 28 September 2022

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Cost of Living, Minimum Wage Increases and Report of Low Pay Commission: Discussion

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I believe we should increase the national minimum wage as fast as is sustainably deliverable, and that qualification is what I wish to explore a little with both speakers. When the commission looks at setting the minimum wage, which it set at an increase of 7.6%, what are the factors other than inflation which it has to look at?

I know that's yesterday's budget, for example, indicated that domestic growth would be very weak next year so businesses will be in a more difficult environment, with just 1% growth in the domestic economy. Perhaps the Low Pay Commission can explain how it put that calculation together.

On a question to Mandate, it says Government measures should not influence what an employer pays. It is the case that, at the moment, the economy is being asked to pay €10 billion extra in energy due to external factors. That is €10 billion taken out of the economy and we have no control over it. Given the Government is trying to shelter people and businesses from the impact of that, is it not valid to say that, if the Government can avoid a wage-price spiral in Ireland, it should be doing so, and part of the motivation of the Government is to prevent excessive wages at a difficult time? Is that not a reasonable position? I believe that has motivated the Government in the things it is doing on rent, working family payments, electricity, GP cards and so on. I would like to hear the Mandate view on that. In trying to accelerate the growth of the national minimum wage, I feel we have to look at things like an energy crisis of such scale, and that does modify what we do in that period.

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