Dáil debates

Thursday, 16 April 2015

Fair Pay, Secure Jobs and Trade Union Recognition: Motion (Resumed) [Private Members]

 

1:10 pm

Photo of Gabrielle McFaddenGabrielle McFadden (Longford-Westmeath, Fine Gael) | Oireachtas source

The Taoiseach and the Government clearly recognise the challenges relating to the issue which is the subject of the motion before the House.

I agree with much of what was said by previous speakers. At the launch of the Low Pay Commission in February, the Taoiseach outlined data which indicate that 9% of families in which the head of household is at work are classified as consistently poor. I agree with him that such a situation is morally unacceptable and economically unwise. Fine Gael believes, however, that gainful employment is the only sustainable route out of poverty. Work should pay more than welfare and no household with a person in full-time work should be poor. Unfortunately, that is not always the case.

The low pay commission has been established to advise the Government on an appropriate rate for the national minimum wage on an annual basis. This was a specific commitment outlined by the Taoiseach and the Tánaiste when they made the Government's statements of priorities last year. The current national minimum wage of €8.65 was last increased in July 2011 when the Labour Party-Fine Gael coalition reversed the cut of €1 imposed by the previous Government. I welcome that the commission's membership will include people who possess a deep understanding of the interests of low paid workers. Equally, the Government will seek to protect existing jobs by examining measures to mitigate the impact any changes might have on small businesses and employers. This Government is committed to introducing measures to support low paid workers. This is why hundreds of thousands of low paid workers have been taken out of the USC charges imposed by Fianna Fáil.

Other challenges remain, however. We are all aware that Dunnes Stores workers have taken to the streets to fight their corner. I welcome that University of Limerick has been appointed to carry out a study of zero hour and low hour contracts. I hope the results of this study prove beneficial to workers, including my good friends in Dunnes Stores in Athlone who provide a service to their company and customers that is second to none. Their treatment by Dunnes Stores has been disgusting.

The Minister outlined the range of initiatives already introduced by this Government to improve the pay and conditions of workers. The hard work is paying off. We have moved from a position where the country was on the verge of economic collapse to one where the economy has been stabilised and is now growing. Did anyone think the unemployment rate would have fallen to single digits by the end of 2015? From an economic point of view, every person who leaves the live register for employment saves the Exchequer €20,000 per year in reduced social welfare expenditure and increased tax revenue. This is a self-reinforcing cycle of economic benefits. Employment is the Government's top priority. In the two and a half years since the Government launched the action plan for jobs, we have put in place a range of measures to support job creation. Successive budgets have introduced measures aimed at avoiding job killing income tax increases and the most recent budget took the first steps to reducing the income tax burden on ordinary workers, which will help to create further jobs. The pathways to work strategy has also had a major impact on long-term unemployment by ensuring that job vacancies are filled by unemployed people. While too many people remain out of work, I commend the Government for rescuing our economy and building confidence in growing the economy, creating jobs and reducing unemployment. This will ultimately create a better country for all of us.

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