Joe Costello (Dublin Central, Labour)
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Question 166: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the motion recently passed by Dublin City Council regarding fair wages; his views on the matter; if he will introduce a similar scheme in relation to contracts and tenders issued from his Department or its agencies; and if he will make a statement on the matter. [8345/07]

Micheál Martin (Cork South Central, Fianna Fail)
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The national social partnership agreement, Towards 2016, recognises the role that public procurement can play in the maintenance of employment standards and norms, including in respect of wage levels, while also ensuring competitive tendering and value for money in public expenditure. In this regard the agreement contains a number of provisions supporting employment standards through public procurement.

In the first half of 2007 the National Public Procurement Policy Unit of the Department of Finance will commence consolidating and updating existing public procurement guidelines on supplies and service contracts. It will consult with the Social Partners about strengthening the existing guideline provisions on the need to comply with legal requirements in regard to pay and employment conditions. New standard contracts on construction projects contain strengthened provisions on the requirement for contractors to observe statutory agreements on pay and employment conditions when performing public contracts.

With regard to the National Minimum Wage, under the Social Partnership Agreement Towards 2016, ICTU and IBEC agreed that the minimum wage should be adjusted with effect from 1 January, 2007. However, as the social partners themselves were unable to reach agreement on a new rate as foreseen in the agreement, ICTU asked the Labour Court to consider the issue and to make a recommendation on a new rate.

The Labour Court considered the matter, consulted with both employer and employee representative bodies and recommended increases to the National Minimum Wage. I accepted the Labour Court recommendations and the minimum hourly rate of pay was increased to €8.30 with effect from 1 January 2007 with a further increase to €8.65 taking effect from 1 July 2007.

I am happy that, when taken in aggregate, these increases provide for a significant improvement in the earnings of workers on the minimum wage. Our rate compares extremely favourably with the minimum wage rates in other EU member states.