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

I thank the Deputies. I know some stakeholders believe the rate of payment and an earnings cap should be set in the Bill itself. I do not agree with that. Setting the rates by ministerial order allows for greater flexibility and will allow the rate to be revised as necessary in line with inflation, changing incomes and, indeed, changing politics. For example, the national minimum wage is regularly adjusted by ministerial order. Similarly, the method of calculation for payments in respect of annual leave and public holidays is also set out by regulation. It is a sensible provision that allows the Government, and indeed future Governments, to respond to changing economic circumstances without having to make all changes by way of primary legislation.

I have been clear in my medium-term plan, which is to set the rate at 70% of pay, capped at €110 per day. That figure will obviously rise now as incomes are rising. That makes sure employers know what their obligations will be. It is the principle we applied when we designed the pandemic unemployment payment, which was for roughly 70% income replacement up to a capped figure. A minimum rate entitlement will also be set to ensure all workers will receive a reasonable level of compensation. That will be similar to illness benefit. The principle behind us not making it 100%, although that would be possible under the legislation, is that the costs should be shared, approximately 70% by the employer and approximately 30% by the employee, and then by the State through illness benefit, which is funded by employers and employees as well. I need to bear in mind the very high costs that can arise for some employers, not just covering the 70% cost of somebody being out sick but also the 100% cost of the person they have to replace, and perhaps the premium they have to pay for him or her on top of that. This can therefore be a very high cost for an employer, especially if he or she has to pay to replace a member of staff.

On GP card eligibility, I take the point that many people on low incomes do not qualify for the GP card. The solution to that is to increase eligibility for it very significantly over the next couple of years. That is something I will arguing for strongly in the forthcoming budget. While I agree with universality when it comes to the provision of healthcare, it is particularly wrong that people who go out to work every day and who are on very low incomes have to find the €60 to pay the doctor. That is not right and I hope it is something we can change in the budget. The focus up until now has been on children, but I think those on low incomes should be prioritised in the next tranche as well.

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