Dáil debates

Thursday, 10 February 2022

Ceisteanna Eile - Other Questions

Low Pay Commission

10:20 am

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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13. To ask the Minister for Enterprise, Trade and Employment the status of the examination by the Low Pay Commission and the National University of Ireland, Maynooth into the introduction of a living wage in Ireland; if he has received the research report to date; and if he will make a statement on the matter. [6826/22]

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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My question relates to the introduction of a living wage and whether the Minister has received the research from Maynooth. Where are the data? What is the status?

I will refer to my previous question. I am not promoting the use of permits in this regard; I am looking to see why it is not possible. There has to be fundamental reform of the conditions for carers in Ireland and for it to be recognised that this economy cannot thrive without such reform. That is what we need.

This question relates to the Low Pay Commission.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I have spoken previously about how the pandemic has caused many of us to reconsider and re-evaluate what an essential worker is. We now understand it is a much broader group of workers than people would have originally described, many of whom are on low pay and in the private sector.

The Government has been clear that a legacy of the pandemic should be better pay, terms and conditions for everyone, but particularly those currently on low pay. We are committed, therefore, to honouring the programme for Government commitment to progressing a living wage over the lifetime of this Government. In doing so, we need also to recognise that many businesses, especially small businesses, have been badly affected by the pandemic and are struggling to pay existing wages. We need to make sure we proceed in a way that does not cause jobs to be lost in terms of numbers of people employed or that would see employees having their hours cut, as to do so would be counterproductive.

In 2021, I asked the Low Pay Commission to examine the programme for Government commitment to progress a living wage over the lifetime of the Government and to make recommendations to me on how best we can achieve this commitment. Following this request, the Low Pay Commission commissioned a team of researchers in the National University of Ireland, NUI, Maynooth, to conduct research on the living wage. This research was to consider the policy, social and economic implications of a move to a living wage and the process by which Ireland could achieve it. The research will examine international evidence on living wages, examining different calculation methods, examining the policy implications and outlining options for moving to a living wage in Ireland.

I understand that in January of this year, the Low Pay Commission received the living wage supporting research report from the researchers at NUI Maynooth. The Low Pay Commission is currently evaluating this research. The commission is meeting with experts and stakeholders in the area, such as Eurofound, the UK Low Pay Commission, business and employer representatives and representatives of the living wage technical group.

I have not yet received a report from the Low Pay Commission, but I expect to receive it, perhaps in the next month. Once I have received it, I will give it consideration and the Government will respond to the recommendations and set out a policy approach.

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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The Minister said he expected the report next month. I have the privilege of being Leas-Cheann Comhairle, and I think when I listened carefully to a previous reply, the report was to be in the next few months. This is the difficulty. Can we get a precise time for when that report will be ready and when it will be published? Will the research and the report be published? I agree that one has to proceed cautiously, but not forever. Workers in this country could not survive without the benefit of the State through social welfare, which is €21 billion or €22 billion per year, a substantial proportion of which goes to back up inadequate wages. The Government knows that more than I do. It is essential we comply with what was set out in the programme for Government, which is a minimum wage. People cannot survive without it. The Government has heard all the fact and figures; I will not repeat them. At this point, I just want certainty regarding the report. When will it be published? I ask that the Government sticks to that date.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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We will publish the report and the associated research. I cannot give the Deputy a definitive timeline because it is not under my control. The Low Pay Commission is doing this work. It has a new chairman and a number of new members in addition to other ongoing work. My officials tell me we expect to get the report next month, which will be March. It should not take me too long to consider it. It is hoped we will be in a position to bring proposals to Government in April or May and set out a plan to introduce a living wage in Ireland, which we can begin in 2023. I have not seen the report yet and I would need to see it to make that determination.

The Deputy is correct in saying a proportion of our welfare budget goes to people who are at work. It is a relatively small proportion of that €21 billion budget and is often linked to people with large families. Many people on the minimum wage do not qualify for the working family payment and many who earn more than that do qualify. That is to do with the size of their families as much as their level of pay.

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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I entirely agree with the Minister. A substantial amount of that budget goes back to workers in many guises because they are simply not being paid enough. I understand many small employers cannot pay enough because there are many restraints on them, but there is no escaping the fact we need a living wage. It has certainly become much more difficult to provide it because of the way we have given free rein to the market. Has the Minister seen any interim or draft reports?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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No. There has been no interim or draft report.

Question No. 14 replied to with Written Answers.

Photo of Kathleen FunchionKathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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We are under time pressure but we might get to some of the next question.