Mr. Fergal O'Brien:

There is no contradiction in IBEC's view. The way the labour market is working is that those employers who can afford to give pay increases are doing so, which is great for the workers in question and the domestic economy. As Ms McElwee stated, many small businesses across IBEC's membership cannot afford to award pay increases at this point as to do so would threaten their viability and jobs, either in terms of the number of people employed or the hours employees work. There is, therefore, no contradiction in our position, which is a reflection of developments in the labour market.

IBEC members employ approximately 1.1 million people across all sectors of the economy. We are very happy to reflect as best we can all of the issues and business needs of our members and believe we do this quite well. It is great that businesses doing well in export markets and the technology sectors are awarding pay increases. However, for those businesses where labour accounts for more than 50% of the cost base and which are operating in sectors in which turnover is still 15% or more below the pre-crisis turnover figure, wage increases would not be the appropriate course of action. They would cost jobs and prevent more people from returning to work, which must be the priority in addressing the inequality challenge. Again, I see no contradiction in IBEC's position on this matter. It is a reflection of the reality in the labour market and its economic fundamentals.