Alan Dillon (Mayo, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to the debate and acknowledge the work of the Labour Party in bringing forward this Bill. The timing of this discussion could not be more appropriate in the midst of a cost-of-living crisis and rising inflation. I welcome also the Government's commitment to move from a minimum wage policy to a higher living wage that is designed to take into account the proper cost of living. This Bill is broadly in line with these objectives.

The Low Pay Commission, which was set up by a Fine Gael-led Government in 2015, was asked by the Tánaiste last year to commission a team of researchers from Maynooth University to conduct a technical review of the living wage. We in Fine Gael are serious about tackling low pay. In March the Tánaiste received the report of the Low Pay Commission and, along with officials from the Department of Enterprise, Trade and Employment, is currently examining the report on how to move forward towards a living wage. The next steps involve the publication of the commission’s report and the accompanying research report. I heard that consultation on the implementation of the commission’s recommendations is currently under way. That is a hugely important step forward.

In introducing the living wage, it is widely accepted that the impact on small and local businesses must be considered. As a result, a phased approach to reaching the hourly rate is the most likely one, in line with best practices. The living wage might sound like an additional challenge for employers but there are widely accepted benefits to adopting a policy like this. Better wages mean more money for employees to spend in their community which stimulates the economy and makes it easier for businesses to thrive. Better wages also mean greater employee satisfaction, improved job retention and staff who are more dedicated to being part of a team. Employers can also expect increased productivity. I therefore welcome this policy on the living wage.

See this speech in context