Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The national minimum wage is calculated by the Low Pay Commission, taking into account the views of workers and unions and also employers in the business sector. It is now the second highest in the European Union. Far from being behind the curve, we are well ahead of it. We have the second highest national minimum wage in the European Union. Even when one accounts for the fact that we have a high cost of living, we still have the sixth highest minimum wage in the world. We are well ahead of the curve, not behind it.

The living wage to which Deputy McDonald refers is drawn up based on research by NGOs without any input from employers and business. The Vincentian Partnership for Justice does good work. I have studied much of its work over the years. I studied it when I served as Minister for Social Protection. One of the interesting aspects of its research is that were it not for housing costs or rental costs, it would be proposing a reduction in the living wage because they state that the cost of living, other than that part of it relating to housing, has decreased in the past five years. The research assumes that everyone is paying rent. Of course, most people do not pay rent. Most people pay mortgages or own their own homes outright. In many cases, those who are on the minimum wage are students or those who are bringing a second income into their homes. That also needs to be taken into account.

The Low Pay Commission, the Government body that draws up the national minimum wage, takes into account the need to ensure that people get a decent wage. However, it also takes into account the views of businesses and employers. That needs to happen we do not want a situation whereby businesses close. Those in the Border region would be the ones most at risk in this regard given the much lower living wage that exists in Northern Ireland. We do not want to end up in a situation where workers lose their jobs or lose hours, thereby ending up worse off. That is why we have a system that works. It is headed up by the Low Pay Commission, established by the Fine Gael-Labour Government, and it takes into account the bigger picture and the need for people to get decent wages. It listens to employers and unions and recommends an increase every year that will push up wages but that will not cost jobs or cause workers to lose hours and thereby ending up worse off.

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