Gerald Nash (Louth, Labour) | Oireachtas source

The purpose of the Bill is to provide for the necessary amendments to the National Minimum Wage Act, 2000 to ensure the establishment of the Low Pay Commission on a statutory basis. The principal function of the commission will be, on an annual basis, to examine and make recommendations to the Minister of the day on the national minimum wage with a view to ensuring the national minimum wage, when adjusted, will be adjusted incrementally over time, having regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels. Of course, the remit of the commission will involve it exploring many other factors associated with the issue of low pay.

The Bill replaces the previous means by which the national minimum wage was adjusted and will replace them with an annual analysis and recommendations by the Low Pay Commission. These means were set out in sections 11 to 13, inclusive, of the National Minimum Wage Act, 2000 which are now being repealed by section 9 of the Bill. Clearly, the role of the commission is firmly set within the national minium wage legislation of the State. This does not mean, despite the advice of some representatives in this House, that its remit is narrow. I am disappointed that this view seems to be consistently expressed by Sinn Féin, in particular. As previously stated, the commission is certainly doing much more than setting the rate of the national minimum wage and should be taken very seriously, as it has been by trade unions and employers. I expect representatives in this House to take it seriously, too.

Section 5 also provides that the Commission on Low Pay may be requested by the Minister to examine and report on matters related generally to its functions under legislation. That request will be made not later than two months after the start of each year and will form part of the work programme of the commission for that year. That will allow me and future Ministers to each year ask the commission to address areas about which we are all concerned and advise the Government in an expert and evidence based way on the best approach to take. This is a very significant institutional change in Irish society. I hope all Members can support this, but for the reasons outlined I cannot accept the proposed amendments.