Dáil debates

Friday, 27 March 2015

High Pay and Wealth Commission Bill 2014: Second Stage [Private Members]

 

11:15 am

Photo of Gerald NashGerald Nash (Louth, Labour) | Oireachtas source

Deputy Brendan Smith recognised that the Government's focus is very much on creating jobs and wealth and ensuring the wealth created is distributed fairly by the tax and social welfare systems and various other Government interventions. It is about trying to support as many people on low and middle incomes as we can to ensure we have the type of cohesive society to which I aspire, and to which Deputies Broughan and Shortall aspire. I welcome the commitment of Deputies Smith and Shortall to the Low Pay Commission, which is a very important public policy intervention in low pay and income distribution.

The key cause of inequality is the lack of access to meaningful, decent and sustainable jobs. While more needs to be done, there are positive developments in this direction. Unemployment has fallen by one third since 2012 and is at its lowest level in six years. The ESRI is of the view that it will drop below 9% over the next 12 months. The Government is reducing the tax burden on low and middle incomes. Some 410,000 low paid workers have already been removed from the USC over successive budgets and the policy of targeted reductions for workers will continue in the next budget. We have clearly committed to addressing low pay issues. On taking office, we have restored the national minimum wage from €7.65 to €8.65 and I have established the Low Pay Commission to further assess it. My ambition is that the national minimum wage would be progressively increased over time and to make recommendations on what the rate should be. We will receive those recommendations in the middle of the year.

In working its way through the crisis and moving to a position in which people are looking to the future with hope, the Government has been consistently committed to maintaining people in employment, growing jobs, maintaining employment rights and protecting the most vulnerable workers in our society, ensuring we can deliver a cohesive societal response to the unprecedented crisis we experienced in recent years and ensuring those at the top of our income scales carry the burden in as effective a way as possible. I assure the House that the Government will continue to be committed to doing this.

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