Seán Kenny (Dublin North East, Labour) | Oireachtas source

I welcome the opportunity to speak on this Bill and I compliment the Minister of State, Deputy Ged Nash, on bringing it before the House. The establishment of the Low Pay Commission was a key commitment in the statement of priorities agreed by the Taoiseach and Tánaiste in July 2014 and it was launched at the end of February of this year. It has the important remit of making recommendations to Government on the setting of the minimum wage and it will take an evidence-based approach in doing so.

A national minimum wage was introduced in Ireland under the National Minimum Wage Act 2000. In April 2000, the then Government set a minimum rate of £4.40 per hour for the minimum wage. The current rate is €8.65 per hour and it has remained at that rate since 2007 except for a period in 2011 when it was cut by the then Fianna Fáil-Green Party Government. As soon as the current Government came to office, it reversed that cut in July 2011. That restoration and the Low Pay Commission clearly demonstrate the Government's commitment to tackling the whole question of low pay.

Low pay is not only some abstract economic issue. As with other economic issues, such as the question of banking debt, the minimum wage is a matter that is the subject of intense debate. Supporters of a minimum wage, of which I am one, argue that it is necessary to ensure that workers are not forced to work for wages that are below the poverty line. Opponents of it argue that it is an artificial Government imposed wage which increases unemployment as some employers cannot afford to pay the rates. I have never known an opponent of the minimum wage who knew what it is like to work for low or minimum pay. Arguments in favour of it focus mostly on the fact that employers should have a responsibility to ensure their workers are given a living wage. This is something for which the Labour Party has campaigned. On the other hand, opponents argue that in a global economy where economies and countries compete with each other, there is always the threat of moving production of goods overseas to where wages are lower and to where workers have fewer rights. An recent example of this was the announcement in my constituency by Cadbury's in Coolock that it proposed to move production of its Time Out bar to Poland with the projected loss of 60 jobs. This is known as the race to the bottom and such a race needs to be strongly opposed.

I am aware that the commission plans to take an evidence-based approach to the task in hand. This will involve examining existing data, commissioning new research, if necessary, and consulting directly with workers and employers in order to decide on what the new minimum wage should be. The chairperson of the commission is Donal de Buitléir and he is being supported by eight commissioners, namely, Vincent Jennings, Patricia King, Gerry Light, Caroline McEnery, Edel McGinley, Mary Mosse, Tom Noonan and Donal O'Neill.

Quite a range of issues will have to be examined before the commission makes its recommendations. These issues include the changes in earnings since the minimum wage was last increased in 2011 and the rate of employment generally since then. As well as that, the expected impact of a change to the minimum wage on employment, the cost of living and national competitiveness will have to considered and examined. Changes in income distribution and currency exchange rates will have to be considered.

The commission has been given a tight schedule. By mid-July it must settle on an appropriate wage rate, and perhaps that is a good aspect as setting a deadline will bring the issue to a head quickly, and I hope it will avoid the whole matter being procrastinated over a long period.

My view is that the Low Pay Commission represents the next step in the Government's prioritising work and fairness as the economy gradually improves. Having a job is the best protection against poverty and fair wages and conditions are essential to achieving that. I wish the Low Pay Commission well in its work and I commend this legislation to the House.

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