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

I have listened carefully to the debate. I commend Sinn Féin and Senator Gavan for bringing forward this legislation. It has been a very good, important and interesting debate. There is no doubt that we all want to assist low paid workers. The Government has a strong record in that regard. There are, however, ways and means of achieving that aim and, unfortunately, this Bill is not one of them.

After the debate on Second Stage in the Seanad, the Minister requested the Low Pay Commission to examine current practices. That was to include whether legislation might impact negatively on tax and financial aspects on either employees or employers. Fianna Fáil subsequently made a submission and sometimes that party gets things right. The submission made reference to the fact that before any legislation was introduced on employee tips, a thorough analysis of the impact such a move might have on employees and employers would be required. It went on to state that it was essential to ensure more bureaucracy and legislation was not required in an area that does not warrant it.

The Minister made that request to the commission to carry out a study in this area and to report on it. The commission comprises nine members and they are independent. The commission came back with a good report, which was 66 pages long. I read all of it. Few colleagues referenced the report. They have only been rubbishing that report. I am not sure if any Member even read it. I recommend that my fellow Deputies take the report and read all 66 pages, including all of the submissions. They should read all the report and see what it recommends.

In the end, that report, from a totally independent body, recommended that legislation or regulation should not be introduced in this area as the administrative and compliance costs involved would not be justified.

It reported that legislation or regulation should not be introduced in this area as the administrative and compliance costs involved would not be justified. The commission has also indicated that there could be unintended negative consequences, as Deputy Mattie McGrath said earlier, such as the reclassification of service charges leading to a potential reduction in the take-home pay of low-paid employees. That is what the independent commission said. Fianna Fáil also made a submission at the time, which stated that all workers should be paid a decent wage. We all believe that. The submission went on to state that a code of practice should be introduced. It did not say anything about supporting the legislation even though it had been published and debated in the Seanad by that time. Fianna Fáil believed that such a code should be considered as it would improve information to customers and workers and enable business to operate in a fair and transparent manner, which would benefit both workers and consumers. That was what Fianna Fáil stated in its submission.

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