Oireachtas Joint and Select Committees

Wednesday, 12 October 2022

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Minimum Wage, Cost of Living and Low Pay Commission Report: Engagement with ICTU

Mr. Liam Berney:

Let us not forget as well that during the pandemic - and this is continuing - the sectors in which the minimum wage is most prevalent are hugely supportive of this. Hospitality and those areas are hugely supportive. The Deputy may have attended meetings during the pandemic and since the pandemic has eased where the Government met with representatives of small businesses and in particular with hospitality. Those sectors continue to have their hands out for continuing supports. Sometimes, quite frankly, it was a bit embarrassing to listen to it.

The other thing I would say is that they benefit from the 9.5% VAT rate. In our experience, that 9.5% VAT rate is not passed on. They soak it and they take it in increased profits. While the representatives of small business do complain about all of the things that the Deputy has spoken about, a more balanced view about how small businesses are supported generally by Government, as well as the necessity to have workers compensated fairly, is the right approach that we should be taking in the longer term.