Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputies for the points they raised and thank Deputy Farrell for coming in on this matter. I absolutely appreciate that the minimum wage makes a very important difference to many people within our society. I know the argument is sometimes put forward that the number of people who are on the minimum wage is comparatively small within our economy and by moving the minimum wage up it has a positive impact on the wage levels above us, thus delivering a wider benefit to more workers. However, we have 165,000 people who are on the minimum wage in this country. That is a lot of workers who are working hard for what is a minimum income. The Government, in its decisions on the minimum wage, has to accept a recommendation that gets the balance right between trying to support those who are on low income and recognising that their employers at times are also facing challenging circumstances. We also have to be aware of the viability of those employers, particularly employers in the service sector that employ many people. The Low Pay Commission tries to get that balance right and recognise it. Therefore, the Government accepted a recommendation that came from them of 80 cent per hour, increasing it to €11.30.

Some Deputies make the point that in other countries that increase may look larger. However, one has to see it in the context of the cost of living within the Irish economy. That being said, as the Tánaiste has recognised, we acknowledge that for those 165,000 of our fellow citizens who are on this income, it is particularly tough at the moment with the rising cost of living. That is why there is an interdepartmental group in place to consider this very matter, the concept of the living wage and the relationship between the two of them. This is something that the Tánaiste’s Department is currently considering. However, the actual level of the increase that Deputies are referring to now is not a matter for a Finance Bill, as all Deputies know. I accept that they are raising the general point here.

On the availability of the pandemic payment, I will pass the views of colleagues onto the Minister for Health. They have raised this with me on a number of occasions. I understand that the majority of those who were eligible for the pandemic payment have been paid and the payments have been processed. That was my understanding. In an effort to recognise the value of these payments and the contribution these workers have made to the economy, in last year’s Finance Bill we made the decision, with the support of the committee, to exempt the pandemic payment from income tax. We recognise the importance of this payment and the desire for it to be worth as much as possible to those who are receiving it. However, the issue of people not having received the payment is clearly still a very live one. I noticed that Deputies, particularly Deputy Nash, commented on the eligibility of some of the workers; Deputy Nash made the point it appears they are entitled to the payment.