Oireachtas Joint and Select Committees

Thursday, 10 November 2022

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2022: Committee Stage

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Obviously, the section brings the universal social charge into line with the increase to the minimum wage. The increase to the minimum wage is 7.6%. It is not even in line with inflation, or the hyperinflation we have at this point. The Minister will have seen other member states move with greater ambition than the Government. Germany, for example, has increased its minimum wage this year from €10.45 to €12 per hour. This is a 15% increase. The section is in line with an increase to the minimum wage that is not sufficient for low-paid employees. That is the reality. I encourage the Minister to consider what some of his counterparts are doing in other areas. We are aware that all wages are relative in terms of the cost of living and spending power. Before this crisis, Ireland was paying the most for electricity before taxation in Europe. The crisis has only made it worse. We were paying the most for childcare in Europe, and we have some of the highest mortgage payments, although it is evening out now. Nowhere can beat us in terms of rents. It is just crazy what has happened in this city. It has got to a point where it is no longer a housing issue. Rents in this city are now causing education and health issues. This is a complete and utter catastrophe. The point I am making on all this is that the minimum wage has not increased sufficiently, and the section gives effect to the tax changes to the minimum wage.

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