Seanad debates

Wednesday, 15 December 2010

Financial Emergency Measures in the Public Interest (No. 2) Bill 2010: Committee and Remaining Stages

 

1:00 pm

Photo of Marc MacSharryMarc MacSharry (Fianna Fail)

These points are general rather than specific to the Bill. However, I am supportive of the points made by Senator O'Toole. The issue is being examined, but clearly it is not sustainable to have pensions at such levels. That is where reductions are necessary, but I fully agree with the Senator on the context set. He used as an example the Minister for Health and Children, Deputy Harney. These measures do not apply to me because I am a member of the class of 2002. The Minister of State, Deputy Calleary, is an example of someone who must reach 67 years of age before claiming any entitlements.

I am one of the people to whom Senator O'Toole refers in discussing the payment of increments. The system is unjust. Public sector pay levels must be cut because we cannot sustain current levels, but it is unjust that 23 individuals in the entire public service are denied increments. I would have no difficulty in accepting a lower salary - I advocate it - but it is unjust that just over 20 individuals are penalised. A senior Cabinet Minister who shall remain nameless said to me at the time that they did not consider being a Member of the Seanad to be a job. On that basis, the Minister questioned how increments could be paid. That is reprehensible and I said so to the person concerned.

I may not contribute to the debate on other sections, but obviously I support the Bill. While it is painful in the extreme that we must contemplate a reduction in the minimum wage, it is just to do so at this time. Consumer prices have returned to 2007 levels. The various joint labour council agreements and the minimum wage were set at a time when circumstances were very different. Circumstances now dictate that we have had to move to different levels. While these levels were set to protect employees in the past, in my view the minimum wage as it stand and the joint labour council agreements set at the levels they are have become impediments to employment and certainly have become issues which threaten the sustainability of certain jobs. As a result, the minimum wage reduction is necessary - I know an amendment has been tabled - and as a result I commend the Bill to the House.

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