Mr. Neil McDonnell:

We are not happy with the approach of the Low Pay Commission. We do not have representation on it so there is no one to speak with our voice. On the question and point about supports, business does not want support. Effectively, we are saying if the cost base shifts so much that a business needs State support, we have interfered with the cost base too much. That is the honest answer. If the State has to intervene, the quickest way to do so is through the PRSI system.

The information is out there. For example, the report prepared by Dr. Dermot Coates at the Department of enterprise is very explicit on the sectors that are most affected. The data is already there. In some of these cases we are speaking about businesses with a labour percentage of the cost of sales of 50%, 60% or 70%. We absolutely acknowledge the ESRI statistics showing that this refers to a very small cohort but we have to bear in mind that if we remove this incentive it will affect employers, such as Willow with Jean McCabe. Not alone would there be no incentive to employ, there would be an active disincentive to employ someone, as the law intervenes to have that work treated differently. The law states the working structure and break structure are different for these people. Unless there is contemplation of a change in the other protections for young workers, it would not be fair in this regard.

As to the issue of collective bargaining, Deputy Bruton is aware that for a very long time we have sought to engage with the collective bargaining instruments in the State through LEEF. We are actively being prevented from doing so. I know there is denial that the trade union movement does not want to engage with us but we feel that in this committee and others there is a desire to keep small business away from the collective bargaining machinery of the State through LEEF.