Dáil debates

Thursday, 26 May 2022

Ceisteanna ó Cheannairí - Leaders' Questions

 

12:20 pm

Photo of Mick BarryMick Barry (Cork North Central, Solidarity) | Oireachtas source

Good afternoon Tánaiste. He is back from the luxury ski resort. I am sure he did not do a Eugene Murphy and sleep in the back of a car, so I am curious to know how much the rooms cost in Davos this year and what was the all-in price of the trip.

For some time the Tánaiste has been solemnly warning about the dangers of a wage-price spiral. It seems his analysis is up to serious challenge these days. For example, writing in the Business Postlast weekend, Dr. Aidan Regan of the school of politics and international relations at UCD highlighted research by the US Economic Policy Institute that showed since 2020, 55% of US inflation had been caused by corporate profiteering. How much of it was caused by wages? It was 8%. He also quoted European Central Bank board member Dr. Isabel Schnabel who gave a major speech last week where she backed up that analysis and indicated it was very much applicable to Europe as well. Regan concluded in his article that new corporate taxes on excessive profits would do significantly more to combat inflation than holding back wages. I have heard the Tánaiste say he is bringing a proposal on the living wage before summer. That is very good. You would not feed the pigeons with the minimum wage these days. However, to be clear the figure of €12.90 was set before this inflation crisis and before rents started regularly topping €2,500 per month. What is needed as an hourly wage just to survive, to live, these days? I say it is €15 per hour and would like to hear the Tánaiste's comment on that.

In his reply he might also update us on where things stand with his living wage proposal. The Minister for Public Expenditure and Reform said at the weekend that Department officials would meet the ICTU this week to discuss public sector pay. Will the Tánaiste update us on what is happening there? Public sector workers need pay increases that match inflation. Is the Government prepared to engage on this basis? Last week, 2,000 medical scientists gave a small glimpse of the potential power of more than 300,000 public sector workers when they went on strike. The Government might think it has the measure of the union leadership but it would be wise not to underestimate the strength of feeling on these issues from ordinary trade unionists at the grassroots. I conclude with a question. Is the Government going to risk plunging the country into an autumn of discontent or is it going to engage seriously with public sector staff about wage increases that match the rate of inflation?

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