Ms Maeve McElwee:

In response to the issue of the pay survey, in the first instance, we do not keep any record of how many of our members pay the national minimum wage. As such, I am unable to answer the Deputy's question.

IBEC has a significant number of very small companies among its members. In terms of the survey we circulated of increases in pay, the majority of employers who responded indicated that they intended to increase pay. This covers all sectors of IBEC's membership. However, when one breaks down these figures, one finds that more than half of companies with fewer than 50 employees have indicated that they are not in a position to increase pay this year. There is, therefore, significant diversity in the ability of companies to pay. This diversity is based on sectoral and regional factors.

The Deputy asked why IBEC had rejected calls for an increase in the national minimum wage. The reason is that we do not believe there is any cost of living requirement for an increase in the national minimum wage by IBEC members in particular sectors. I refer specifically to the retail, hospitality and low cost manufacturing sectors which need to manage competitiveness to keep in line with their competitors in the United Kingdom. We are still in a very early phase of recovery and many of these sectors are not recovering at the same rate as some of the larger companies where pay increases are being awarded. We must bear this in mind and allow these sectors to build a sustainable recovery. We also want to encourage smaller businesses, irrespective of whether they are members of IBEC, to increase employment, for which they require stability and need to be able to pay a competitive rate of pay.