Joan Burton (Dublin West, Labour)

As Senator Bradford reminded the House, the Bill provides for the restoration of the €1 per hour cut in the minimum wage. While €1 per hour is neither here nor there for people on high incomes, its restoration is worth up to €40 per week for someone at or close to the minimum wage. If one is only earning €350 per week, this is a significant increase. I stress that the Bill contains a balance of measures. From 1 July, the restoration of the minimum wage will give people on low incomes an increase of €40 per week.

This is a balancing measure alongside the cut in employer's PRSI. If an employer is employing people at the reduced minimum wage, he or she will be restoring their wages by €1 per hour on the one hand while, on the other, the Government will provide a reduction in employer's PRSI. This will have a balancing effect overall for employers, particularly those who are paying recently hired staff at the reduced rate, in that the minimum wage will be reinstated and employers will receive a concession from the Government in the form of a 50% reduction in employer's PRSI.

I am confident that the arrangements being made will not lead to employers pursuing wage reductions. Instead, we hope that employers will retain and expand the number of jobs, particularly in the tourism and related sectors where the lower rate of VAT applies.