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

I thank the Deputy. I have a very clear view on this. I believe there should be pay rises. I do not say that lightly. I say that as somebody who signed off on a 3% increase in the minimum wage only a few months ago. The Minister of State, Deputy English, has also signed off on pay increases in various different sectors. Indeed, the Government has a pay deal with our own employees, public servants, to increase pay. There are two modest pay increases this year and there may well be more. However, I also believe, as does the Taoiseach, that it is a mistake to think that pay rises will solve the problem of inflation. Pay rises will not bring down the cost of living. In fact, some pay rises may even further increase the cost of living because many businesses will have to fund those pay rises by increasing what they charge their customers for goods and services. We want pay rises but not pay rises that contribute to inflation and make the situation worse. That is why we have to look at these things in the round. I refer to pay policy, what we do in terms of tax and welfare, which is another way to increase people's disposable incomes, and what we do to reduce the cost of living with regard to things like childcare, rent, healthcare and education. My concern is that we are not looking at these matters in the round and that the issue is being approached in a piecemeal manner. That is why we are engaging with employers and unions through the Labour Employer Economic Forum, LEEF, next week and talking about how we might be able to put a bit of order on this so that people do not see any pay increases swallowed up by the highest rate of tax or rising prices. That would not be to anyone's advantage.

On collective bargaining, as the Deputy knows, our system is a voluntary State system in which the State does not seek to impose a solution on the parties to a dispute but will, where appropriate, assist them in arriving at a solution. This approach has served us well for many years. Our Constitution guarantees people the right to freedom of association, that is, the right to join a trade union or any other organisation they want to. However, it does not force people to associate if they do not wish to. That is an appropriate approach.

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