Ms Maeve McElwee:

As IBEC has already presented its views on the national minimum wage to the committee in the past, I will speak to the general scheme of the Bill.

Head 2 amends Part 3 of National Minimum Wage Act. Section 12(b) refers to changes in currency exchange rates during that period. That is the period between the review by the low pay commission and the previous setting of a national minimum wage. From the point of view of considering currency exchange rates, that is too narrow a timeframe given the potential volatility of exchange rates. Any shock in exchange rates could leave low value-add industries exposed relative to competitors. We would respectfully suggest a rewording. It would be more consistently addressed if section 12(d) were to state: "international comparisons, particularly with Great Britain and Northern Ireland, taking into account currency exchange rates;".

Again with head 2 the issue of competitiveness is considered. A number of considerations have been laid out for the low pay commission to consider, including levels of employment to unemployment, the cost of living and national competitiveness. Given its importance in considering any adjustment to the national minimum wage, regional competitiveness should be specified there as an additional subsection.

Head 3 deals with the addition of a Second Schedule to the National Minimum Wage Act 2000. This is section 1(4) dealing with the balance of representatives on the commission. In defining the structure of the low pay commission, the balance of representation has been very carefully considered. We would like to see inserted in the legislation that in the event of an absence, for whatever reason, on the low pay commission of any of the representatives provision is made to fill that immediately. I recognise that the heads provide for doing so within six months of a vacancy arising. Nevertheless given the timeframe between reporting which is in July and implementation, it is actually a shorter period. Therefore in order to protect that balance we would like to see that provision strengthened.

Also in that section we have a point about the chairperson of the low pay commission. It is unclear whether the chairman would have a casting vote. For clarity and understanding of how the commission would work, it would be important to set that out.