Arthur Spring (Kerry North-West Limerick, Labour)

I thank the Minister and commend her, and her Department, on the work and thought they have put into this Bill. This legislation, along with the Finance (No. 2) Bill, will introduce measures to promote the Government's jobs initiative, as well as changes needed in the social welfare code and in the Pensions Act. I view this Bill as a reaction to restore equity for the lower paid by the re-introduction of the hourly rate of €8.65 as the minimum wage from 1 July. This is something we hold close to our hearts as a protection for those who are most vulnerable in society. The Labour Party and Fine Gael considered this had to be done as a matter of the utmost importance, so we are dealing with it within our first 100 days in office. I commend the Minister on that and I am delighted to be part of it.

This reinstatement of the minimum wage is a reaction to a harsh and unfair decision by the previous Fianna Fáil Government to drastically cut €40 every week directly from the pockets of our lowest-paid workers. The sum of €40 may not seem like a lot of money but it amounts to 11% of their take-home pay. The previous reduction left workers on the minimum wage with €306 per week, thereby questioning whether it was worth their while to work. We must reward those who work. The Government's decision to restore the minimum wage shows that it is committed to the lowest-paid workers and those who are most vulnerable in society. We must do this at all times during the Government's tenure in office.

We need to stimulate the economy but the reduction of the minimum wage was doing the opposite. People on the minimum wage spend every penny they earn in order to survive and sustain any standard of living. To reduce that wage further puts working people into poverty. If people are asked to live off €306 per week they will ask what society is trying to achieve and will question its sense of decency.

This timely reversal will vindicate the Labour Party's position that the lowest-paid workers should be protected first and that work should be rewarded. Work has to be rewarded but the cut in the minimum wage was not an incentive in that regard. The reversal of an ill-conceived attack on the lowest earners in our society will make a real difference to those who join the workforce and decide to do so on those grounds.

The Bill will also establish a national internship scheme, which I am happy to see. Throughout Europe, Canada and Australia, one sees people seeking to join such internship programmes with a view to getting real work. The proposed scheme will assist those who have been on jobseeker's allowance for more than three months to gain valuable experience and combat long-term unemployment. People want to work because the prospect of long-term unemployment is both demoralising and unfair. The internship scheme is a step in helping people to re-enter the workplace and is a positive development. People throughout the country will regard this scheme as a way of staying in Ireland and developing experience, as well as having pride in themselves. They will thus participate in developing businesses and voluntary organisations in the public and private sectors.

Overall, the scheme will put skilled, educated people to work. We have such people in abundance but an additional sense of energy will emanate from the new scheme which, to begin with, will provide 5,000 opportunities for jobseekers. We can even take the scheme further and, to this end, I am currently working on related issues with some of the relevant Departments. It is important to keep the unemployed close to the work environment and this scheme should be viewed as an opportunity to train and get hands-on experience that may be crucial to their success in finding work in the near future. If this internship scheme gives any young people such opportunities, it is to be commended.

While considering the lowest paid in society, the Government must also aid employers. The halving of employers' PRSI rates, as set out in the Bill, is a welcome development because small businesses around the country are finding it hard to survive, given the crippling rents and rates that arose from what was a false economy. They are getting a break in a direction which will entice them to employ people again, particularly in labour intensive industries which will help tourism, agri-business and micro-enterprise, three areas in which we have particular proficiency. The easing of the costs on employers in this way will help job creation and improve labour cost competitiveness.

Many Deputies have made comments that are not cognisant of the fact that IMF is here. We have lost our financial sovereignty. There will be very few good days until the IMF is gone from our shores. We are taking small and gradual steps to improve the country. To those who can contribute to it, I commend them for doing so. Everybody has a part to play. This is a good day and a good step in the right direction.

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