Alan Dillon (Mayo, Fine Gael) | Oireachtas source

I thank Deputy Murphy for raising this really important matter. As he will be aware, the Low Pay Commission recommended the abolition of the subminimum rates in March 2024. The Low Pay Commission highlighted in its report that this is a complex issue. It stated that the Government will need to give the findings and recommendations detailed consideration and deliberation, and highlighted the need for the Government to take its own legal advice on this really important matter. I agree with the commission that this is a complex issue. Our Department is giving these findings and recommendations its full consideration. Our Department has commissioned an economic impact assessment of the commission’s recommendations. These recommendations were accompanied by a research report by the ESRI. While the study provides valuable information on the incidence and characteristics of subminimum employment in Ireland during 2022, it stops short of modelling the impact of making changes to youth rates in the here and now.

Recent significant increases in the minimum wage show the Government’s commitment to fair wages for low-paid workers in our economy, but it is also important to acknowledge the challenges being faced by the small and medium enterprise sector in recent years. We know the use of subminimum youth rates is largely concentrated in the accommodation, food and retail sectors and that these sectors have reported considerable cost pressures in recent times. It is important we give this issue the full care and the deliberation it requires, rather than rushing into a decision that could have unintended consequences for young people and employers. The Government will make a decision on these rates after the economic impact assessment has been completed and any required legal advice is available to us.

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