Mr. Martin Shanahan:

I said earlier that items that add cost to employment make it more difficult to market FDI. This is a matter of scale. I cannot say what one thing will be the final straw. The detail is difficult. Items that add cost to employment or to employing somebody have a negative impact on investors and potential investment. Increases in wages, minimum or otherwise, of themselves are not a bad thing in the sense that the ambition of all economies and societies is for people to earn more and have a good standard of living but wage movement should be connected to productivity. Where we gain more productivity and the increases are justified that is great. Increases in themselves, not connected to productivity, are problematic because they make us less competitive and make it more difficult to attract FDI. The last time I considered the minimum wage, in my previous position, my recollection is that it impacts approximately 4% of the labour force. It sets a floor for other jobs up to a certain point within the labour market. Movements at that level do have an impact but it is impossible to say what exactly in isolation. It is a question of the overall package.