Oireachtas Joint and Select Committees
Wednesday, 10 July 2024
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Sub-Minimum Rates of the National Mininimum Wage: Discussion
9:30 am
Richard Bruton (Dublin Bay North, Fine Gael)
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I will go first if I may. We had a recommendation from the Low Pay Commission. I would be interested to hear the comments of the three representatives on it.
Essentially, it is proposing abolition, but it states that “When considering the timelines for any changes ... the Commission recognises that this is a complex issue that will require the full deliberation and consideration of Government and may require further legal advice and consultation with stakeholders.” That is what is currently under way. The issues it is exploring are signalled in its recommendations. It states that “no sooner than 1 January” should any changes be made. There should be a study after two years to see what impact it has had. It states that when this is introduced, consideration should be “given to how employers with a substantial proportion of young workers in receipt of sub-minimum wages can be supported” during the transition. I would like to hear about whether that is the correct approach. What are the areas in which this support may be needed if we are to go down this road? Have either the ESRI or ISME identified the sectors that will be put under pressure? What sort of support would be appropriate if this unanimous recommendation is accepted, which we have to recognise?
What are the issues that need further investigation? We have a certain amount of evidence from the ESRI and others. What is the next issue? Has the ESRI dug into the subsectors to see what the patterns are and where these particular impacts would be? The issue on which there is a difference is whether having lower youth rates does spur some opportunity. Does the ESRI have any experience in Ireland, as opposed to looking at international studies, as to the role that lower entry pay has played in opening up opportunities to young people?