Dáil debates

Tuesday, 3 February 2015

Ceisteanna - Questions (Resumed)

Social Partnership Meetings

4:20 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael) | Oireachtas source

I would not object to having a debate on poverty, particularly child poverty. Various elements are drawn in from the statistical world to produce these figures. Perhaps the end of the term, before the Government makes its spring economic statement, might be an appropriate time to have it. We do not live in different worlds.

I have outlined all the available options the Government puts in place for people who are in receipt of social protection measures. In terms of incentives, it is very important for people to be able to know whether, if they go to work, they will lose their medical card or housing support, or whether they will continue to receive the increasing rate of child benefit or draw the €30 per week per child family support. These are important measures that the Government has recognised such that we can tell people perfectly legitimately that we do not live in a different world, we know exactly the pressures they are under and here are the opportunities to get out of that particular dilemma and go to work to better themselves and their families.

Of course, there has been emigration from our country for a couple of centuries. Where I come from there is not a house that does not have people in England or in the United States. The trend now is such that by the end of 2016 I expect more Irish people will be coming home than leaving. Some leave to get experience or because they want to go away for a year or two, while they are young, to get a job or whatever. Nobody wants to see people leave. The challenge for us all is to develop our own infrastructure around the country to the point where the business and tax environment is conducive to people coming back and for people to want to do business at home. I had a call from somebody in Singapore who has a good job and could employ people. He said in the past few years it was not feasible for him to come back here. Now he sees the trend of some flexibility being given in terms of tax reductions and I support that.

The Low Pay Commission is not a study. For years people were asking what should be paid as minimum wage and how would it be made up. There was never a scientific basis in reality for all those charges. The Government has reversed the minimum wage. It is now €8.65 per hour, an increase of €1 per hour but we want to move to a point where we consider the conditions and the issues surrounding low paid workers and put in place a proper system for analysing those so that a decision can be made on it. The terms of reference for the Low Pay Commission are published and available for Deputy Adams. It is a nine member body; it will report before the summer: three members are appointed from among persons who, in the opinion of the Minister, have “a deep understanding of the interests of low paid workers", a very good knowledge and experience of working on behalf of workers’ interests or representing workers, particularly low paid workers, or a proven track record in an advocacy or representational role on behalf of the low paid. Three members are appointed from among persons who in the opinion of the Minister have a deep understanding of the interests of employers, particularly small to medium sized employers and those operating traditionally in low paid sectors and who possess a good knowledge and understanding of how business actually functions, particularly in regard to labour costs. There are two members who have knowledge or expertise of some or all of the following - labour market economics, employment law and proven competence in analysing these matters.

This is not a study, to say this is awful or that could be improved. This is a commission that is due to report to the Minister for Jobs, Enterprise and Innovation and in particular to the Minister of State with responsibility for business and employment, Deputy Nash, for consideration by the Government on what it should do in all of the circumstances surrounding low paid workers. It is the first time this has been done. It will have a benefit in that Government has said it will act following receipt of the report. It will be obliged to take into account changes in earnings since the most recent order for the minimum wage, changes in the currency exchange rates. The euro has weakened because of the decision of the European Central Bank, ECB, which means there is greater value for people coming to Ireland from Britain and from the United States, because of the dollar and the pound. That means our hospitality sector has greater things to offer. It also means that business costs go down and there is greater access to credit. I hope that variable mortgage rates can be implicated and reduced. For exports this is a real opportunity for business and if the business environment is right for further employment that is an issue.

The questions of employment, unemployment and changes in income distribution are for the Low Pay Commission to consider, as per the terms of reference and to report back to Government, and Government will act on that. I hope that will in some way reflect a genuine consideration for those caught in that trap. I have no difficulty about having a genuine discussion here on child poverty and letting people give their views on it. I hope that with our strengthening economy, coming from a very fragile base, more young Irish people who went abroad in recent years will come back with experience and add it to the progress the country is undoubtedly making.

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