Billy Kelleher (Cork North Central, Fianna Fail)

Across industry, the C2 certificate is being used to circumvent paying the registered employment agreement rates in various sectors. That has been brought to my attention on numerous occasions by people tendering as self-employed contractors and not charging the rates under the registered employment agreements. That is a fact.

When wages are out of kilter with what the economy can support, there is the issue of the black market and the cash economy. That is also quite evident in the construction industry. A new tax incentive was announced in the budget to improve energy efficiency in homes and tax relief is available on expenditure up to €10,000. That was to try to encourage people to stay in the legitimate economy. That issue is causing difficulties.

No government walks lightly into the national parliament and asks it to support a reduction in the minimum wage. However, it is necessary because of the circumstances in which we find ourselves. We hope it will allow people currently on social welfare to be employed. It will also allow students or those seeking part-time work to find a few hours work here or there which heretofore they may not have been able to do because employers were unable to pay €8.65 per hour as has been stated in numerous debates in the Dáil and, I am quite sure, in this House recently.

Many Members pointed out that rates of pay were too high, including double time on a Sunday and so on. They all highlighted that employers could not afford these rates of pay. The Government has taken some action to try to address that and we are now hearing a different story from Senators.