David Stanton (Cork East, Fine Gael)
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Question 63: To ask the Minister for Justice, Equality and Law Reform the efforts he is making to address the gender pay gap; his views on the causes and results of same; and if he will make a statement on the matter. [18188/06]

Michael McDowell (Dublin South East, Progressive Democrats)
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While there is a number of factors involved in the gender pay gap, it is generally agreed that the biggest factor is the difference between women and men in accumulated work experience, and women taking time-out of the labour force for child rearing and caring duties. Other factors include occupational segregation, educational and training differences, promotion policies within firms, the availability of child-care, and the availability of maternity, parental leave and family friendly work practices. Women also dominate part-time employment, which is often less well paid than full time employment. Over 30 per cent of all women in employment are in part-time jobs. However, it should be noted that the vast majority of those working part-time are doing so voluntarily and few part-timers are recorded as preferring to have longer hours.

In order to address the Gender Pay Gap the Government has adopted a multifaceted approach across a number of areas. The Consultative Group on Male/Female Wage Differentials, set up under the Programme for Prosperity and Fairness, was chaired by my Department and reported to Government in November 2003 on actions required to address the gender pay gap. Their research found that increased labour market participation by women was an important step in reducing the pay gap. The report contained a number of recommendations addressing a wide range of Government policies including: taxation, statutory minimum wages, education and training, and the development of family friendly policies.

We have acted on these recommendations and the indications are that Ireland has made considerable progress in relation to the gender pay gap with a significant narrowing of the gap in recent years. Twenty years ago the gap was about 25%. The most recent statistics produced by Eurostat (European Union Statistics Body) show an Irish Gender Pay Gap of 13% which is just below the EU average.

The recent reductions in the gap are attributable to a number of factors including: the introduction and regular increase of the National Minimum Wage, the implementation of legislative provisions, the introduction of the Equal Opportunities Child-care Programme, part-individualisation of the taxation system, increases in child benefit payments, and the continued strength of the Irish economy and the underlying strong demand for labour.

The Government has introduced a major investment initiative, partly funded by the EU, to develop child-care over the period 2000-006. This has created over 41,000 new centre-based child-care places, an increase of over 70 per cent. We are also providing an additional €575 million for the Child-care Investment Programme 2006-2010, which will create a further 50,000 child-care places. In addition, we have provided very significant increases in child benefit which is now at a minimum of €150 per month for each child under 18 and from this year, we are providing a special annual payment of €1,000 for each child aged under six years.

We have also increased paid and unpaid maternity leave with similar increases promised for next year. Parents will then be entitled to a total of 56 weeks between paid and unpaid maternity leave. This is complemented by the parental, adoptive and carer's leave provisions introduced or strengthened by this Government and is a major support for women in the labour force who have child-care and/or other responsibilities.

The National Minimum Wage (NMW) has played a significant role in narrowing wage differentials because women tended to occupy a greater proportion of lower paid jobs and their incomes are now protected by Minimum Wage legislation. In May 2005, the National Minimum Wage was increased from €7 per hour to €7.65, an increase of over 9 per cent, and well ahead of inflation. As women occupy a greater proportion of lower paid jobs, this is a significant step in narrowing wage gap differentials.

My own Department has responsibility for the Equality for Women Measure (EWM) in the National Development Plan which has provided funding to projects for the period 2000-2006, including proposals aimed at addressing the glass ceiling and horizontal segregation in the labour force. The Equality for Women measure supports proposals designed to promote:

∙access to employment, education and training, retraining and up-skilling

∙encouraging entrepreneurship and career development among women

∙innovative actions for disadvantaged women and older women

∙gender proofing of personnel policies and practices, by means of the Equality Reviews and Action Plans Scheme, which is being implemented by the Equality Authority family friendly policies in employment and sharing family responsibilities

∙research and information campaign for women returning to paid employment

∙achievement of equality for women in the workplace and business and

∙participation of greater numbers of women in decision making.

The Equality for Women Measure was funded initially from the Regional Operational Programmes of the National Development Plan which set aside almost €30 million for the period 2000 to 2006. Since then, the Measure has been reinforced with funding of over €6 million from the Employment and Human Resource Development Operational Programme, including €3 million from the European Social Fund. Since 2001, the vast bulk of that funding has been provided to 70 organisations to deliver positive action projects, for women in their communities, in education and training, in work and in decision making.

As a positive action programme, the Equality for Women Measure, along with gender mainstreaming, reflects the dual approach of the Irish Government to promoting equality for women. Since its inception, the Measure has demonstrated the ongoing relevance of positive action, both to contributing to the well-being of women in different situations, and to reinforcing the impact of gender mainstreaming.

The spread of actions supported by the Measure is comprehensive and diverse, ranging from providing foundation training to women in their communities, to building gender equality capacity within the social partners. A common feature across all projects is the relevance of the actions they are undertaking to address the attitudinal, cultural and structural barriers to equality for women. To date, approximately 7,000 people have participated in the 70 projects funded under Phase I of the Measure and many thousands more have benefited from the services delivered by the projects. The second Phase of the Measure, covering the period 2004-2006, has a particular focus on poverty and social exclusion and this is being delivered through the RAPID programme. A sum of €7m was approved in March 2005 to fund 58 projects within RAPID designated areas.

In addition to the funding directed to RAPID areas, a sum of €2m has been allocated to fund the mainstreaming of learning developed in Phase I of the Measure. Included in this figure is €500,000 which has been ring-fenced for the mainstreaming of Science, Engineering and Technology (SET) projects. A further €1m has been allocated to FÁS to mainstream their "Expanding the Workforce" initiative which is designed to encourage women who wish to return to the labour market.

Again under Phase II, funding of €300,000 has been set aside for the programme of Equality Reviews and Action Plans which is being managed by the Equality Authority on behalf of the Department. A further €50,000 has been allocated to the "Leadership Initiative" to support the "Future Leaders" Programme which provides training to women in senior management positions in the public and private sectors.

This multifaceted response which the Government is taking in addressing the gender pay gap will be developed further in the National Women's Strategy which is well advanced. Its development is being overseen by an Inter-Departmental Committee of Senior Officials, under the chairmanship of my Department and is the subject of an external consultation process. I am hopeful that the draft National Women's Strategy will be finalised and submitted to Government later this year.