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

I do not expect the Low Pay Commission to come back to us with the rate of the living wage. I expect it will come back to us with a method by which the rate can be calculated on an annual basis. Perhaps that is the same thing, but it is an important point nonetheless. There are two ways of calculating it. It can be calculated as a percentage of median wages, for example, 50%, 60% or 65%, and there are different arguments as to which figure should be chosen; or it can be calculated based on what is called a minimum essential standard of living based on a basket of goods and services that people need to be able to afford to get by. Then there is a debate about what should be in the basket or not. That is the kind of work that is being done by the commission at the moment. It is giving us advice on which method to go for and why.

I think the Low Pay Commission is a good body. It is a body that was established under the Fine Gael-Labour Party Government. It does it the right way. There is an equal number of employer and employee representatives on the commission, and there are a number of people who are independent figures who are not part of any sectional interest. I know there are some groups that calculate minimum wages, but they exclude employers. I imagine if employers had a group that excluded workers, it would come up with a different rate. Therefore, it is important that we have everybody involved. However, I have no doubt, because it is what happened in the UK, that whatever the living wage is set at there will always be a group of people who will say that it is not enough and they will then look for a real living wage. That is the way it goes.

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