Michael D Higgins (Galway West, Labour)
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Question 11: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if it is intended to review the level of the national minimum wage during the current negotiations between the social partners; and if she will make a statement on the matter. [18051/04]

Frank Fahey (Galway West, Fianna Fail)
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Discussions regarding the national minimum wage are taking place in the course of the current talks on the second phase of the pay element of Sustaining Progress. As the talks are still ongoing it would be inappropriate for me to comment further on this issue.

Brendan Howlin (Wexford, Labour)
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I do not accept it is inappropriate for the Minister of State to divulge Government policy to this House. Does he not accept he has a duty to keep the House informed about Government thinking on matters? Does he further accept we have lost sufficient authority in the House to mechanisms that have worked well for the economy but have impacted on our democratic accountability processes?

What exactly is his view regarding IBEC's contention that, as I see referenced in its initial statements, not one extra cent should go to the low waged? Is it Government policy that there should be a focus on low pay and that the balance of any increase in wages should be received by those on the minimum wage or those in receipt of the lowest wages in the State? Is that Government thinking and what is the Government perspective in regard to these talks?

Frank Fahey (Galway West, Fianna Fail)
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It is certainly Government policy that there should be a national minimum wage, unlike the policy of previous Governments. It is for that reason the Tánaiste introduced a national minimum wage in April 2000, which was a most welcome development. The increase from £4.40 to €7 since then has been reasonable.

Brendan Howlin (Wexford, Labour)
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Does the Minister of State think so?

Frank Fahey (Galway West, Fianna Fail)
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The Government is anxious to ensure people on lower pay are adequately rewarded and that every effort is made to ensure the minimum wage increases in line with the consumer price index or by more. That has been happening to date and this issue is being considered in the talks.

It is Government policy to ensure the minimum wage increases to protect the interests of workers on lower wages. It is significant that it was in the lifetime of the previous Government that the minimum wage was first introduced. I accept Deputy Howlin is concerned but that concern was not apparent when his party held the finance Ministry.

Brendan Howlin (Wexford, Labour)
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I thank the Minister for his historical lecture but I would rather he focused on the questions that are current and affect the lives of people today. Does the Government support the strategy put forward to close the gap between those on the lowest level of pay and those on higher levels of pay, or will the Government allow that gap to increase after the conclusion of the current pay round? What attitude of mind does the Government bring to the current talks?

Frank Fahey (Galway West, Fianna Fail)
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It is important the gap does not widen. The thrust of Government policy has been to ensure people on low wages are brought up to speed and, in addition, that the tax burden for people on low wages continues to be decreased. The Deputy can take it that it is Government policy that this should continue. That is the position regarding the current talks, in addition to a desire to further decrease taxation and take more people out of the tax net in the forthcoming budget.

Brendan Howlin (Wexford, Labour)
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I have a brief question.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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It is now 4.45 p.m. and the time for Question Time has concluded,

Brendan Howlin (Wexford, Labour)
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I have about 30 seconds.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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There will not be 30 seconds for the Minister to answer it.

Brendan Howlin (Wexford, Labour)
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In ten seconds, does the Minister accept 52% of PAYE employees on the average industrial wage pay the higher rate of tax, which is unprecedented in the State? This needs to change if there is to be a real focus on those on the minimum wage and low pay.