Oireachtas Joint and Select Committees
Wednesday, 18 September 2024
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Sub-Minimum Rates of the National Minimum Wage: Discussion (Resumed)
9:30 am
Mr. Diarmaid Smyth:
I thank the Deputy. There are three points there. I will try to take them. In regard to the argument on whether it is a low number, I am of the view that 15,000 persons is a low number. It is 0.8% of employees. In the context of having 2.7 million people in employment in Ireland, which is up 335,000 over five years, it is a low number. That is not to say it is not an important number. The Deputy is right that the majority of those are students. Of those 15,000 people, the incidence is as follows.
The incidence is much higher among 15- to 16-year-olds, and the questions of what type of students they are and where they are pursuing their education are important. The indirect effects tracing through from those on sub-minimum wage are something we need to look at more. The Deputy makes a valid point there. We will certainly take it on board and feed it into our considerations over the next couple of months.
The Deputy's point on the cost of living is well accepted. We are really aware of the tremendous surge in inflation in Ireland over the past number of years when it approached double digit levels. We have all seen the pressures on the rental sector. However, I make the point again that inflation has come back pretty markedly; I think it is down to 1% at present. We have seen the ECB engaging now on an interest rate cutting cycle, so the cost of living is certainly improving. Looking at the summer economic statement, we saw a return to real wage growth in Ireland again at the start of this year, which we welcome. In addition, we have had quite a big package of support from Government for people under pressure in terms of cost-of-living supports. There has been a great deal done there, but I go back again to how well the labour market has done in terms of generating employment. That is the best way to keep people out poverty and deprivation. If you are unemployed in Ireland, you are four times more likely to be at risk of poverty and three times more likely to suffer from deprivation. The motivation the whole time has to be attempting to increase numbers at work, and that is what we are doing very successfully in this country.
On the indirect effects and the time the economic impact assessment report is going to take, I take the Deputy's comments on board about the delay and the time it is taking. We will factor that into our considerations.