Micheál Carrigy (Fine Gael) | Oireachtas source

I am sharing time with Senator Burke. I welcome the Tánaiste and I welcome the legislation. I pay tribute to him for driving forward significant changes for workers throughout the country, which is extremely welcome. It is also welcome that there will be a gradual introduction of statutory sick pay over a number of years, building up to an entitlement of ten days. However, I am concerned that this provision will put a lot of stresses on many businesses, particularly in the retail and hospitality sectors. I have a small business and I know from personal experience the effect the change will have. This is especially the case for businesses in the services industry, with employers having to cover approximately 70% of the costs when an employee is out sick and, in addition, 100% of the cost of a replacement employee. We must be cognisant of that.

I support the calls by Senator Maria Byrne and the CSNA for a rebate scheme. I am strongly of the view that such a scheme needs to be put in place. Businesses are struggling and there are very tight margins, particularly in retail. Where there are significant increased costs, they must be spread across the rest of the business. There already have been significant increases in the cost of energy and businesses are prepared to accept further such increases, but they need help. In the retail sector, in particular, there are certain areas of the business on which those increases cannot be imposed. If a retailer is a national lottery agent, for instance, there is a set margin. Cigarettes can make up a significant part of a retailer's sales but, under the Finance Acts, it is not possible to put anything on top of the recommended retail price of tobacco. Any increases will have to be spread across bread, milk and other basic goods. This will have the knock-on effect of increasing the cost of living for people.

I strongly urge that consideration be given to putting a rebate scheme in place. As I said, there is a severe knock-on impact on business, particularly smaller retail businesses and the hospitality sector. Nevertheless, I welcome the Tánaiste's comments and the proposed introduction of a living wage. That is needed. Employers want to, and will, support the introduction of statutory sick pay, but they want help as well.