Brendan Howlin (Wexford, Labour) | Oireachtas source

The reason the 2009 Act had general application was that it was indiscriminate - it simply cut everybody's pay from €0. What I am trying to do is to take a much more nuanced approach. The only pay cut will be that in excess of €65,000. I want to give protection to those who want to register agreements with the Labour Relations Commission in order that we have the flexibility to deal sector by sector in a way that is captured in this section.

The Senator was quite happy to have an overarching let us cut everybody Bill but not a more nuanced one, which states we will be discriminatory and will focus on those who can afford best to carry the burden, that is, those earning more than €65,000, and where there is a buy-in to a freely negotiated brokered deal under the Labour Relations Commission and where Ministers at sectoral level will have the power to deal with it sector by sector. The power already exists and my officials explained it to the Senator. For example, in the case of the HSE, the legal powers are devolved under the Health Acts to the HSE to make those decisions. I want clarity that it resides with the Minister.

There was a High Court decision yesterday which determined that a decision made by the Minister for Education and Skills was ultra vires because that power should have been properly exercised by the VEC and not the Minister. For that level of clarity in regard to workers generally, it is important this provision is here.

As I said, I hope there will be an overarching agreement with the Irish Congress of Trade Unions which will make all of this moot because the full deal, as worked out by the Labour Relations Commission and negotiated with trade unions, will apply across all sectors.