Dáil debates
Tuesday, 19 July 2016
Leaders' Questions
2:30 pm
Enda Kenny (Mayo, Fine Gael) | Oireachtas source
I thank Deputy Howlin for his question. The Low Pay Commission is an independent entity set up by the previous Government to bring a structure and a realism to claims for increases in the minimum wage. As the Deputy is well aware, the Low Pay Commission was set up because of the nature of the way claims were being put forward prior to that. The former Minister of State, now Senator Gerald Nash, did much work on that with the former Minister, Deputy Bruton, at the time.
The Government was interested in having a low pay commission to bring about independent objectivity. One of the first decisions of the previous Government was to reverse a cut in the minimum wage that had been brought about before, and it increased the wage by 50 cent. This is an independent entity. The Government approved the publication of the report today, 19 July, and the Minister for Jobs, Enterprise and Innovation now has three months to consider the implications of the report before coming back to the Government in September. There is a minority report, as the Deputy is aware. There are nine members on the Low Pay Commission and three of those had a different view. The report must be considered carefully by the Government.
As Deputy Howlin is well aware from his own experience, the Low Pay Commission values its independence and would not want to be in the position of being directed. The €10.50 rate referred to in the programme for Government was an indication of what might be achieved over a five-year Government. Whereas the recommendation is for an extra 10 cent per hour, this is clearly an indication of how seriously the employers and specialists in the area view the implications of the decision from the British referendum on EU membership. They have made their judgment and I consider taking the possible implications of that into account.
The Minister for Jobs, Enterprise and Innovation will consider the report in its entirety and has three months to come back to the Government. She will do so in September. As the Deputy is aware, we favour having a position where work is seen to pay and there is an incentive for people to go to work. That is always a consideration that must be taken into account as well.
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