Paddy Burke (Fine Gael)

I welcome the Minister of State, Deputy Dara Calleary, and wish him well with his portfolio, which deals with labour relations, the labour market and labour in general. I wish to comment on a point Senator Carty raised about the Lisbon treaty referendum, the "No" campaign and its posters claiming there will be a minimum wage of €1.84 per hour. It is unbelievable that people would, in this day and age, use posters in a campaign to claim that the minimum wage will be reduced to €1.84 per hour if the treaty is passed. That is absolute balderdash and is unsubstantiated in any way.

I welcome the legislation. The Minister outlined the various issues it covers. I also welcome the decision to reduce the rate from double time for weekend work to time and one third. Our tourism industry is very important but it has become very uncompetitive. As Senator Quinn said, it is something of a chicken and egg situation. We have a high minimum wage and a high wage economy. How does one go about rectifying and reducing that to compete with other economies? High minimum wages are required to pay for the provision of goods and services so people on the lower rung of the ladder are not disadvantaged.

Our tourism is very important but when one visits countries such as Spain, Portugal and Italy and compares the cost of services, eating out, groceries and so forth with the costs in this country, one can see a huge difference. We cannot compete with the likes of Spain and Portugal in terms of the cost of food and eating out. It is therefore a help that the Minister has reduced the overtime rate on Sundays from double time to time and one third. However, there is another issue the Minister should consider and it relates to pensions. Undoubtedly, people who work at weekends deserve to be rewarded for working unsociable hours. We have contributory and non-contributory pensions. A new pension should be introduced for those who work unsocial hours and weekends. Under the new pension scheme, such employees should pay a different rate of PRSI. The Government should consider this proposal as it would benefit those who work unsocial hours.