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. I appreciate his concerns. The Low Pay Commission took a very detailed look at this and there is a very extensive ESRI report with fantastic data on the incidence of youth minimum wage rates, which is being considered. The LPC also engaged heavily with stakeholders. The report from March is very clear. It is only from March 2024 but, as the Deputy said, the commission argued to abolish the youth rates. At the same time, however, the LPC acknowledged that this is a complex issue – I think that is the word it used - and talked about the need for more consideration and analysis.

Going back to the economic impact assessment, we have data from a number of years ago, but it is to try to assess the sectoral, regional and firm level effects of any change. This work has been agreed and will take place. We hope to be in a position within six to nine months where we will have an economic impact assessment to make an informed view. Ultimately, it is a matter for the Minister and it is a ministerial decision. Our job is to help provide the evidence and data.