I am delighted to have the opportunity to contribute to the debate on the reduction to the national minimum wage. The Government has received a great deal of criticism for the difficult decisions it has taken in next year's budget. The decision to cut the minimum wage was not easy nor was it simply about saving money for the State. The reduction is about job creation and, more important, job stability while ensuring we have a more competitive labour market. Let us not fool ourselves by playing politics in this Chamber.

I welcome the measures taken in the budget that work towards keeping people in employment and reducing unemployment, especially among young people. I am pleased we are tackling the job crisis and taking steps to ensure Ireland becomes more competitive. Deputy O'Brien referred to the fact that 1.8 million people are working. This measures affects only 3.2% of those in employment. SIPTU can forward all the e-mails it wants but it needs to get real and deal with the facts on the ground. We are asking everyone to play a part and I am fully confident we are taking necessary measures to ensure growth and stability in the labour market in the coming years.

Our policy to make the adjustment in the minimum wage is part of our plan to create more jobs. Ireland has been criticised over its high labour costs and we have priced ourselves out of the market. The cut to the minimum wage is not a popular action but it is necessary. The current rate is acting as a barrier to job creation in many sectors. We have witnessed reductions in wage rates across the board in the public and private sectors. Following the adjustment, the rate will remain in the top tier of EU minimum wage rates and it still will be considerably higher than in Great Britain and Northern Ireland. I know all too well about that, given I am a Border Deputy.

I am aware of the problems that people are facing in my own constituency, including unemployment among those under the age of 25, small businesses struggling to pay their workforce week in, week out while, at the same time, trying to remain competitive, loss of custom across the Border and decreasing tourism figures. These issues must be dealt with and, in doing so, we have to get real and do what we can to make the market more competitive. The adjustment to the minimum wage can offer hope to the 4,586 people in County Donegal aged under 25 who are currently on the live register. It can help lower the costs of those hundreds of small businesses operating across my constituency and the rest of this country and bring the economy closer in line with our competitors.

We have experienced massive job losses in the retail, tourism and hospitality sectors and I have been contacted by local businesses about their concerns for the future and their constant struggle to keep their heads above water in the current climate. Our research clearly shows that a reduction in the national minimum wage will reduce the cost of doing business and support an increase in employment in the medium term. The Government is working to support small businesses and those working in labour intensive industries.

I have spoken to many people in my own constituency who are very angry, concerned and worried about their futures and, in particular, the futures of their children. The vast numbers of those aged under 25 leaving Ireland to find work elsewhere is not seen by the Government as a solution to our economic and jobs crises. I strongly believe the decision to reduce the minimum wage, along with a solid plan comprising new initiatives to help those in receipt of unemployment benefits, is a credible solution. The Government is taking the correct measures to create jobs for the future and to protect sectors that are particularly vulnerable during these difficult times.

There is no doubt about the need to make our economy more competitive. Reducing the minimum wage by €1 will ensure we have a more competitive economy. With the labour market beginning to stabilise, this offers us a great opportunity to show we are open for business and that we continue to have a highly skilled, flexible labour force. This reduction will help us maintain our reputation as an excellent destination for businesses. The Opposition has heavily criticised the Government parties for its decisions. However, we are offering realistic solutions that are in the public's interest. The debate on the minimum wage is not new with many groups calling for a cut, including some Opposition parties. This measure has been widely welcomed by groups including the Restaurants Association of Ireland, the Irish Hotels Federation and Chambers Ireland. IBEC also agreed that cutting the minimum wage will help avoid further job losses and loss of competitiveness and the OECD referred to the minimum wage as a structural issue that needed to be addressed.

To conclude, we must get real about the issues involved. Are we serious about getting our economy back into a competitive position or will we just play the usual politics across the floor of this House? I support the Government's amendment.

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