Peter Fitzpatrick (Louth, Independent) | Oireachtas source

A new living wage rate has been set at €12.90 per hour. This is the basic amount found to be necessary to cover workers' needs. This is €2.40 above the minimum wage of €10.50 per hour. This higher rate is due to hikes in rent, transport and energy costs. Rents are increasing daily and it is nearly impossible to find a rental property in some areas. In my own town of Dundalk, a three-bedroom house now costs a minimum of €1,600 per month. In the last 12 months alone, the cost of transport has rocketed. This time last year one could buy diesel for €1.05 per litre but now it costs over €2. Energy costs are going through the roof. People are spending hundreds, if not thousands, extra per year on energy.

According to Dr. Micheál Collins, UCD lecturer and member of the Living Wage Technical Group, a full-time worker on the minimum wage would be €105 per week short of what is needed to meet the costs of a basic but decent standard of living. A living wage would enable a worker to save €10 per week, have a holiday in Ireland for three days a year, have a social outing at least once a month, have a decent diet and buy one newspaper per week.

I do not think that is too much to ask for. It has also been estimated that one in five people are on the minimum wage. People must earn a living and many go without a lot of things, which is totally and utterly wrong.

Last year, I was here when the Minister for Enterprise, Trade and Employment asked the Low Pay Commission to examine and make recommendations on the best supports that would establish a living wage in Ireland. He has received the report and is expected to bring it to Government before the summer recess. I think he should do that sooner rather than later.

Let us consider that, on an almost daily basis, the price of food, clothing, healthcare, household goods, education, transport and energy has increased. Basically, the price of everything has increased. We all must either pay a mortgage or rent and pay our bills for such things as credit cards, utilities, insurance and phones. The cost of living in Ireland increased by 4.2% during the pandemic and inflation now runs at 5.5%, which is the highest rate since 2001. The rising costs of living puts pressure on everybody, particularly the low paid. The Minister of State and I know from living in our constituencies and being close to the ground that some families must choose between putting on their heating or eating.

The living wage rate is currently voluntary so it is not compulsory for employers to pay their workers a living wage. Some companies pay a living wage such as Ikea, Aldi, Lidl and SSE Airtricity. I commend the companies that are willing to pay their employees a minimum wage. The difference between the minimum wage and a cost-of-living wage is a massive 18.6%. I am a former employer and I know that if one pays a decent wage one easily gets that back.

The former Nobel Prize winner, Professor David Card, has demonstrated that there is no evidence to support claims that a rise in the minimum wage would cost jobs. The benefits of paying a living wage will help everybody. For example, last week I spoke about people who receive the housing assistance payment, HAP. A lot of the people who do not get a minimum wage will end up seeking social welfare.

In conclusion, I plead with the Minister of State to ask the Tánaiste to come back in here and give us the information that the commission gave.

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