David Stanton (Cork East, Fine Gael) | Oireachtas source

The principle of equal pay for women and men for equal work or work of equal value has been part of Irish law for almost 45 years and is part of everyone's contract of employment. The gender pay gap is somewhat different in that it is the difference between the average gross hourly pay of female and male employees. Not respecting the principle of equal pay is likely to be a contributory factor to the gender pay gap, but there are a number of other causes as well. Among the factors which interact in creating the pay gap a number have an obvious gender dimension. I refer to traditional role models, gender segregation in education and in the labour market, the challenges of balancing work and family life, the difference in participation of men and women in family responsibilities, the availability of quality, affordable childcare facilities and out-of-school hours care and processes within organisations where imbalance needs to be addressed.

To put the situation in Ireland in a broader context, it should be noted that, according to statistics from 2014, Ireland has a gender pay gap below the EU average. It is 13.9% here and 16.7% in the EU. However, our gender pay gap has shown no longer-term tendency to decline and, therefore, must be the focus of specific action. Pay transparency as provided for in this Bill and in the Government's proposals is one such measure and, in recognition of that, the Government does not oppose this Bill. Indeed, the gender pay gap is the subject of a number of actions in the programme for partnership Government. Measures committed to include increasing investment in childcare and reviewing the lower pay of women and gender inequality in senior appointments. To that end we have established a strategy for the private sector called Better Balance for Better Business. It is part of the national strategy for women and girls which was published in 2017. One of the actions in the strategy is to carry out an independent review of corporate boards in Ireland focusing initially on Irish Stock Exchange companies. That will report to the Government in the first quarter of next year. It will also cover gender differences in the senior management of companies, as mentioned by Deputy Jan O'Sullivan earlier.

We are all agreed that it is important to approach this from a number of different angles. Having women in senior management at board level is an incentive and support to other women and girls to move up the line and take up such positions. Deputy Jan O'Sullivan was right to refer to diversity in companies. Many companies are recognising and valuing this now. When there is diversity in companies, it helps everybody. Ultimately, it helps with the bottom line. The companies are happier places in which to work and people are valued for their diverse ways. Many companies are beginning to realise that now but we must help them with that.

The Government is active on all of these issues. The programme states that we will also seek to promote wage transparency by requiring companies with 50 employees and more to complete a wage survey. These commitments are reflected in the actions in the National Strategy for Women and Girls 2017-2020. Action 1.22 of the strategy states that we will initiate dialogue between key stakeholders, unions and employers aimed at addressing the gender pay gap, and develop and promote practical information resources to explain and increase understanding of the multifaceted aspects of the gender pay gap and its causes. Practical tools will be developed to assist employers in calculating the gender pay gap within their organisations. Clearly, this is an action which must be addressed before legislation such this Bill or the Bill the Government is preparing comes into effect. Action 1.23 of the strategy pledges to promote wage transparency by requiring companies with 50 or more employees to complete a wage survey periodically and report the results. This is, of course, the subject matter of the Bill before us.

The Government has concerns with the specific approach proposed in the Bill, and I will outline some of these. The Bill provides for the insertion of a new section 32A in the Irish Human Rights and Equality Commission Act 2014. Subsection (1) provides for the making of a scheme by IHREC. As set out in the subsection, the exercise of any authority or power to make a scheme would be at the sole discretion of IHREC. There is no provision under which the Minister may require or request IHREC to make a scheme. As such, there is no provision whereby enactment of this legislation is guaranteed to result in the introduction of wage surveys as promised in the programme for a partnership Government. We must bear in mind and respect that the Irish Human Rights and Equality Commission is independent under the Paris Principles. As subsection (1) is phrased, approval of the Minister is not required for any scheme.

While IHREC has undoubted expertise in this area, it would be appropriate that powers are subject to the control of the Minister, as is the case under section 31 of the Irish Human Rights and Equality Commission Act 2014 whereby codes of practice can be prepared by IHREC for submission to the Minister and the Minister may, by order, approve them. There is no similar mechanism in the Bill so it is very much out of line with the principal Act. In effect, it gives a quasi-legislative power to IHREC with no mechanism for oversight or control. The Bill provides not just for the publication of the overall gender pay gap figure for an employer but for disaggregation of this figure by reference to bonus pay, full-time or part-time status and the ages of employees. In this context, we must bear in mind the data protection aspects and my Department is consulting the Office of the Data Protection Commissioner on the Government's Bill to ensure that it respects the general data protection regulation, GDPR.

As I said, the Government wants to legislate in this area. Our proposals have been with the Joint Committee on Justice and Equality since 5 July last. Our proposals are informed by the debate around this Bill in the Seanad. Indeed, I wish to acknowledge the great work of Senator Bacik on the Bill. She continues to make a significant contribution to advancing gender equality.

Our proposals are also shaped and informed by our consultations with employer and employee stakeholders. The debate in the House this evening will be of considerable value as will the report from the Oireachtas Joint Committee on Justice and Equality, when we receive it. I hope that Members would appreciate the value of the considered approach taken by Government in respect of this legislation. I look forward to hearing the views of other Members in the House this evening.

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