Seanad debates

Wednesday, 12 June 2019

National Minimum Wage (Protection of Employee Tips) Bill 2017: Report and Final Stages

 

10:30 am

Photo of Paul GavanPaul Gavan (Sinn Fein) | Oireachtas source

It stated no research was done and in the next sentence stated it would not do any either. Fortunately, Deirdre Falvey did research for The Irish Times. Apparently, it is one of the most read articles published by the newspaper this year. It found the major restaurant chains put on between 5% to 15% service charges which they then pocket.

What those in the Gallery have already clued into is that the Minister’s proposals - at this late stage as we have had the Bill for two years - will not deal with the central point, namely, hospitality workers deserve a right to their tips. They do not currently have one. Our Bill will do that.

The Minister’s interpretation of the taxation rules is quite bizarre. I hope Senator McDowell will not mind me saying but I was encouraged that it was his view as well. The Minister is just incorrect about taxation. This proposal gives a legal right of redress. It does not change the fact that for tips given in cash, it is up to the employee to declare those. It does not change the fact that tips on credit cards already pay tax which will not change either.

The other point the Minister seems to have forgotten, which suggests to me that she is not as close to this issue as she needs to be, is that most of the workers in this sector do not earn enough money to pay any tax. Are we serious about helping these workers? This Bill seriously does. I welcome comments from Senators Horkan and McDowell and other Members because they are saying, with one voice, let the Bill pass. I would be happy to keep this cross-party consensus going and work with the Minister to address any concerns she has. We have looked at the Bill thoroughly and know there are no tax implications. Rather than Fine Gael taking a stand to deny hospitality workers a right to their tips, the Minister should work with us.

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