Colm Keaveney (Galway East, Labour)

Leaving that aside, the debate must be on the principle, not on the personalities spoofing about workers.

I have no interest in attacking anyone for the sake of it. To single out people in this debate is a new low in this Chamber. We must engage with the reality on the ground. People throughout the country are struggling to put food on their tables. There is no doubt about that. That is a consequence of the previous Government.

Unlike the United Left Alliance, the Labour Party cannot afford to live in a constant revolution. We must deal with reality. I have given careful consideration to the Duffy-Walsh report, the employment regulation orders and wage setting mechanisms here. I, and many of my Labour Party colleagues, speak as one on that. While it remains my opinion that cutting wages will not do anything for job creation, I understand as well anyone the position in which the Minister finds himself as a consequence of the previous Government's commitment to the EU and IMF, in particular a document signed off with the EU and IMF under the memorandum agreement in December 2011. The Duffy-Walsh report affords this Government a considerable and viable roadmap to bring about reform which is widely accepted and agreed by the social partners and trade union movement here. There is no disputing this Government on the need for reform. There is wide consensus that reform of our antiquated system in this area is necessary. The Labour Party welcomes the opportunity to be part of that reform.

There are varying views within Government on the scope of that reform. I am fully confident that the Cabinet will make the right decision when this issue is laid on the table next week. Within the Duffy-Walsh report there is no evidence to suggest that cutting wages will lead to job creation. There is no evidence to suggest that if we cut pay there will be a corresponding growth in employment. It would be a mistake to ignore a cohort of expert opinion in this area. If we go down this road we will find that it has the potential to destroy the economy. The central cause of failing business and job losses is the unprecedented collapse in consumer spending. That fall is ten times greater in Ireland than in any of our eurozone competitor countries. Not surprisingly, we can thank the previous Government for this.

A couple of weeks ago I spoke in this Chamber in support of the jobs initiative, a commendable attempt by the Government to help people get back to work and get their lives in order. It is imperative to be mindful of what we are trying to achieve. We must avoid making any decision which counteracts the proposals we are making. This Government was elected on a promise to protect people from the politics of the past. I intend to defend that promise because there are people who quite literally are hanging by a thread. I spoke two weeks ago about retailers in my constituency of east Galway who face the reality of that day in and day out. This is about keeping money in the pockets of working people and ensuring they can attend their work with some element of dignity. It is not about personal tax or points on red line issues, such as have been made here.

Despite the conflict we are hearing in the House today, we need reform and to protect the domestic economy. We need to protect what people have in their pockets, thus ensuring that high street Ireland can be confident consumer spending will keep doors open. I look forward to the outcome of the deliberations at Cabinet. We look forward to the Cabinet collectively standing over a decision to protect working people.

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