Finian McGrath (Dublin North Central, Independent) | Oireachtas source

I warmly welcome the debate on low pay as we all need to do something about low pay in this country and stop people being exploited. It is not good for the person, families or society. We need solid action on low pay. It is not good for economic growth or spending in the wider society. When I hear the talk about the so-called recovery and the end of austerity, I ask why so many people are on low pay. Why are so many families struggling to survive? Why are so many living in poverty? These are all very important questions for the Minister of State and need to be addressed. I want to see a society built on social justice and equality and yet when I look around I see families struggling on low pay.

Only a few days ago a young family of five came to me, both parents work on low pay but they cannot get a mortgage. They are paying a massive sum of money in rent and would love to own their home. There is nothing wrong with the dream of having one's own home. People in wealthier sections of society say we need to get into the mentality of renting a place as people do in other countries. I do not buy that. In the Irish case, most families would like to have their own home and are entitled to have that. We need to stand by those people, listen to their concerns and help them get out of the situation they are in. We need to deal with that by tackling the issue of low pay, as this legislation does.

Currently, 138,000 children are living in poverty. Consistent poverty increased recently from 6.8% to 11.7% but in some communities, it is higher. Recently, 1,054 children were deemed homeless. When we talk about low pay, we are also talking about real equality, including children's rights.

The Bill provides for the establishment of a Low Pay Commission on a statutory basis, which I welcome.

While I frequently give out about the Government, I accept that the Minister of State is serious about this issue and has a genuine track record in this area.

The Low Pay Commission will be tasked with making annual recommendations to the Government about the appropriate level of the minimum wage and related matters. The commission will comprise a chairperson and eight ordinary members, each of whom will be appointed by the Minister. However, the Minister will not be bound by its recommendations.

Many Deputies have wrung their hands in the House about the closure of Clerys. The Government must legislate for improved workers' rights and more effective employee information and consultation in line with the principles set out in Article 27 of the European Charter of Fundamental Rights and Articles 21 and 29 of the European Social Charter. This would not only benefit all employees, including former staff of Clerys, but also all citizens. The Government has an opportunity to correct an injustice and pursue the long-term objective of building a better society and this important commission must be part of achieving this.

Last week, I signed a new charter for enhanced rights for workers, which was drawn up by the Irish Congress of Trade Unions, ICTU. The document has five main points covering pay, hours of work, representation rights, respect in the workplace and the right to earn a living income from full-time work. A single adult would need to earn at least €11.45 per hour to have a living income and ICTU has called for the introduction of this rate over the next three years. The charter also calls for an end to certain work practices, including low and zero-hour contracts. I signed the charter before the general election because its implementation would be good for workers, society and the economy. This is an example of the "pound in the pocket syndrome" where an extra €1 given to families, especially low-paid earners, will be spent in a way that will support the economy.

I referred to the composition of the Low Pay Commission. The commission's members should also include someone who is unemployed or on low pay. Employer and employee interests will be represented by three members each, while two members will have particular knowledge and expertise in economics, labour market economics, statistics and employment law. We must ensure the commission includes members who know what it is like to be unemployed or on low pay and have experienced the struggle for survival.

See this speech in context