Joe Costello (Dublin Central, Labour)
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Question 38: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has made a submission in regard to the review of the national minimum wage currently being carried out by the Labour Court; and if she will make a statement on the matter. [27427/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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In November 2008, ICTU requested the Labour Court to review the national minimum wage and to make a recommendation to me concerning its adjustment. The court is required under the National Minimum Wage Act 2000 to consult with representatives of employers and employees in the private sector and the public sector of the economy. In this regard, I understand that the court invited submissions from IBEC, ICTU and the Department of Finance. The Labour Court also held discussions with these parties and I understand that the matter is still under consideration by the court.

Given my responsibilities under the Act with regard to the consideration of any eventual Labour Court recommendation on the minimum wage, it would not be appropriate for me to make a submission on the matter to the court and I have not done so.

Willie Penrose (Longford-Westmeath, Labour)
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The Department of Finance has made a submission so the Government has a position on it. The Labour Party does not think there is any justification for decreasing the minimum wage or cutting in any way the basic levels of social welfare, so we may as well start from that premise. The arguments for increasing it can be discussed with regard to current economic circumstances.

Many of those people in receipt of minimum wage or at the basic level of social welfare have the highest propensity to spend in the economy. The propensity of these people to save is minimal because they do not have such resources, so if we cut their available resources further, it will have a further deflationary effect on the economy. It is important to note this, and I do so as somebody who must pay the minimum wage.

Has there been any indication of how far the Labour Court has progressed in its assessment of the position? Is it correct that once it has made recommendations to the Minister of State with responsibility for labour affairs, he will have three months to consider them? Is it the position that the minimum level of wage, on which ICTU and IBEC have adopted different stances, has not been reported on by the Labour Court, despite it being there for a considerable period? Is that an indication of difficulties? That is neither here nor there. Does the Government intend to resolve the issue within the context of the new round of social partnership talks rather than wait for the Labour Court to deal with it?

Mary Coughlan (Donegal South West, Fianna Fail)
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The Labour Court would be very cognisant of ongoing discussions within the social partnership process and on that basis, I expect that the Labour Court would not be making a recommendation to the Minister of State. I have heard both sides of the argument. I had the opportunity to meet Commissioner Spidla and he indicated that the labour relations issues we have - the minimum wage, the EROs and JLCs - are such that we will not have an imposition of further legislation from the European Union on the basis of our own domestic policy. That is unlike a number of other member states, where the European Union is giving direction on issues that must be addressed.

The issue of the national minimum wage is causing difficulty, particularly in some of the very vulnerable sectors, but at the same time we must give assurances to people who are vulnerable in these sectors that they have an entitlement. We must balance both of these factors. Until such a time as we have seen a finality in the social partnership process, I am in anticipation of a decision from the Labour Court.

It is important to reiterate the Taoiseach's comments in the House last week in that we have seen the unit labour costs in Ireland reduced by 7%, which will address our competitiveness.

Leo Varadkar (Dublin West, Fine Gael)
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Like with many issues, real information on this is rarely shared in the House. That has much to do with the way democracy has declined in this country under the past 12 years of a Fianna Fáil-led Government. There is a draft document on The Irish Times website outlining the proposals submitted by the Government to the social partners with regard to pay in the private sector. The Government's draft document indicates the review of the minimum wage being carried out by the Labour Court should now be suspended. Is that document authentic and is it the Government's position with regard to the negotiations with social partners that it should be agreed that the Labour Court review of the minimum wage would be suspended?

Mary Coughlan (Donegal South West, Fianna Fail)
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I have much more to be doing than reading The Irish Times, and from what I can see, the Deputy spends 99.9% of his time on the Internet and the computer. I do not have the time to read The Irish Times and what it has to say.

It is my responsibility not to make any public pronouncement on the basis that we must adjudicate within the Department of Enterprise, Trade and Employment. As we all know, the views of the Department of Finance relate only to that Department and I cannot give any public comment on the issue. I do not want to find myself in a position where I could be brought before the House having expressed a public opinion which, per se, is not a recommendation from the court.

I have indicated that while the partnership process is ongoing and as there has not been final deliberation on this issue, I will not expect a recommendation from the Labour Court until it comes to fruition. It is my expectation that the maturity I have seen, regardless of what has happened this week, on both sides would reflect the economic difficulties we are currently experiencing. We must await the outcome of the matter.

Arthur Morgan (Louth, Sinn Fein)
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Is the Tánaiste aware of a growing chorus on the part of exceptionally well-paid individuals in respect of a reduction in the minimum wage? Whatever about articles on website of The Irish Times, etc., will the Tánaiste indicate her view on the minimum wage and whether it should be either reduced or increased?

Mary Coughlan (Donegal South West, Fianna Fail)
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I am precluded from expressing a view on the matter. However, it is important to say that there is an opinion among many companies which are struggling that the level at which national minimum wage is set is causing them difficulties. It is not necessarily that people are in receipt of the national minimum wage but these companies are of the view what is over and above that wage is causing those difficulties. We introduced the national minimum wage in the first instance in order to provide protection to people, particularly those working for vulnerable companies, who might not have had the capacity or capability to express their own views. On this occasion, the jury is out.

Arthur Morgan (Louth, Sinn Fein)
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Does the Tánaiste accept the point made by Deputy Penrose?