Billy Kelleher (Cork North Central, Fianna Fail)

If the minimum wage is not reduced, employers will not be able to afford to take people on. The Senator is looking at this the wrong way. The idea is to ensure that an employer who has a number of employees can take on another employee or two employees.

Senator Buttimer spoke about walking around the streets, and we all do a bit of that from time to time. We are quite conscious that numerous businesses are struggling. They cannot sustain these wage rates, or if they want to take somebody else on, they cannot do so currently. There are also other pressures and burdens on employers, such as rates, local authority charges and other costs. We are trying to shift a cohort of people who are currently on social welfare into employment by employers creating more jobs due to the reduction in the minimum wage. That is what is behind this measure.

This legislation allows for the minimum wage to be adjusted upwards or downwards. I am very proud of the fact my party introduced the minimum wage legislation in 2002. The minimum wage has increased quite dramatically over the years, of which we are very proud. However, we are now living in a very difficult and different time. People have suggested it will force more people into poverty but I would argue the exact opposite. A number of employers would be able to retain or create additional job opportunities on the new minimum wage.

Senators talked about the minimum wage in isolation but perhaps they should look at the social welfare legislation, at family income supplement and at the other supports which are available. If they are not aware of them, I will circulate the information to them but perhaps they conveniently forgot they exist.

In regard to unscrupulous employers, the National Employment Rights Agency is a statutory body to ensure terms and conditions are adhered to.

The legislation provides for the reduction in the minimum wage but also states the Minister has the authority to increase or decrease it. Looking at our competitors in the eurozone and in other EU countries, we must be conscious that we have difficulties in several sectors of our economy in which we are not as competitive as we would like.

I spoke about registered employment agreements in the Dáil last night. There are registered employment agreements across the construction industry and yet we all know what is happening. People are being employed under C2 certificates. Rather than being paid the registered employment agreement rates, people are tendering on a contract basis on a C2 certificate. The registered employment agreements are being circumvented because they are not sustainable in the current climate.