Dáil debates

Thursday, 26 May 2011

Finance (No. 2) Bill 2011: Second Stage (Resumed)

 

11:00 am

Photo of Colm KeaveneyColm Keaveney (Galway East, Labour)

I wish to address some of the comments made by previous speakers, in particular Deputy Finian McGrath, the selective socialist who sits with a Technical coalition composed of Deputies, some of whom have a pathological hatred of working people. He has a selective memory, especially when it comes to his outstanding support for the former Taoiseach, Bertie Ahern. In fact, he voted for the appointment of the former Minister for Health and Children, Mary Harney. It is ironic that he gave his independent support to a former Administration in return for deals. Deputy Finian McGrath spoke earlier about the historical waste of taxpayers' money by Administrations he supported, particularly when he voted for the bank bailout deal. In that context, we must examine the sincerity of Deputy Finian McGrath's earlier contribution.

It is important to look at the positives of the jobs initiative. I am delighted to be associated with a Government that has taken great steps to penetrate areas of the economy that were in need of significant attention. The jobs initiative goes into some detail on its assistance for the tourism sector. I welcome the changes in VAT rates, the abolition of the air travel tax and the common visa treatment with the United Kingdom that will focus on the sector. We are trying to take as many steps as possible to ensure certain pillars of the economy that are struggling will get a boost. The measure regarding employers' PRSI is also a significant movement for the tourism sector. The Government has take great steps to date to ensure vulnerable areas receive a concentrated effort to make certain they can get our people back to work.

This week saw the publication of the independent review of the employment regulation orders by Mr. Kevin Duffy and the eminent economist, Dr Frank Walsh, a review commissioned by the Government. While great steps have been taken in the jobs initiative to assist the tourism sector, I share many people's concerns about the domestic economy and any further attempts to deflate it and take money out of circulation, thereby reducing consumers' spending power. Those working under the joint labour committee, JLC, rates in the retail and tourism sector are the backbone of the economy. We need to tread carefully in this area and avoid solo runs like that which emerged in the print media this morning by the Minister for Enterprise, Trade and Innovation, Deputy Richard Bruton, regarding personal initiatives and attacking premiums associated with working on Sundays. We need to consider carefully the implications for the domestic economy and retail sector if we reduce the spending power of those working people in question.

It is important to note that hotel and restaurant employees are the lowest paid workers of any sector. The latest Central Statistics Office, CSO, data show the average weekly pay in this sector was €351, half the national average of €698. Research undertaken by the Vincentian Partnership found that in 2009 a family of two, with one parent in work, needed an average of €525 per week to have a minimum essential standard of living. This means that the average weekly pay in the hospitality sector represents 67% of the income required for a basic standard of living.

Hospitality workers did not experience the same level of pay rises that workers in other sectors obtained during the boom years under the Administration with which Deputy Finian McGrath was compliant. In comparison with other sectors, hospitality workers received the lowest pay increases since 2002.

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