Dessie Ellis (Dublin North West, Sinn Fein) | Oireachtas source

The living wage is an effective and powerful weapon in the fight against poverty. Many working people are trapped in an endless struggle of fighting to pay bills, put food on the table and avoid poverty. Low wages can trap people in a poverty cycle that is often too difficult to escape. As rents, bus and train fares and the cost of living increase, it is often the poorest who are hit the hardest. For those on low wages, it is often the case that one has a choice between being able to feed one's family properly, buy one's children clothes for school, provide a lunch for them or avoid a debt crisis. Those are the stark choices for many families I meet every day in my constituency.

Low wages can also lead to the exploitation of workers by unscrupulous employers. It is immoral to take advantage of often desperate individuals and pay them as little as possible. It is equally unjust that workers at the bottom of the pay scale suffer so badly, struggling to put food on the table for their families, while many executives and chief executive officers reward themselves with a disproportionate share of profits or give themselves large bonuses. Such unequal pay distribution leads to social inequality and injustice.

Aside from the issue of morality, there are strong economic benefits to paying workers a living wage. Obviously, it would raise the standard of living of those are struggling to make ends meet, but in addition, it would help to stimulate the economy by increasing the spending power of workers. Workers would be able to put more money into the economy through increased consumer spending.

Increased income also means increased Government revenue. It has been observed that when workers are paid a living wage, worker absenteeism decreases and company turnover can increase. When employers treat employees with dignity and respect, they give them a sense of having a stake in the company. This helps companies to realise the potential of their staff, which can increase productivity. Clearly, this is good for the company and for the economy as a whole.

It is shameful that last week's budget made no provision for the introduction of a living wage. Fianna Fáil, which facilitated the budget, wants to run with the hare and chase with the hounds. With one side of its mouth, it called for a living wage in advance of the budget while, with the other, it supported a budget that gave nothing to low-paid workers. Once again, Fianna Fáil has shown its true colours by voting with its partners in government and against our motion. The effect of its position is to give two fingers to workers' rights. Tá sé ceart tacaíocht a thabhairt don Bhille seo agus is éagóir é dul ina choinne.

See this speech in context