Martin Ferris (Kerry North, Sinn Fein)
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Question 104: To ask the Minister for Enterprise, Trade and Innovation his views on the fact that employers are allowed to claim an inability to pay agreed wage rates; and that the State will in effect be forced to subsidise them through the family income supplement. [19083/10]

Dara Calleary (Mayo, Fianna Fail)
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Adjustments in the gross wages of employees in the private and public sectors have occurred as a consequence of the severity of the current economic recession. The recession is having a direct impact on the level of agreed pay settlements in almost all areas of the private sector and this has also been reflected in the provisions of the Employment Regulation Orders that have been agreed by the Joint Labour Committees that are responsible for determining statutory minimum wages to cover vulnerable workers in sectors such as agriculture, hotels, catering, and retail sectors.

There is currently no provision in legislation whereby an employer can plead inability to pay the wage rates agreed either under the Joint Labour Committee or Registered Employment Agreement systems.

The Family Income Supplement (FIS) scheme is administered by the Department of Social Protection and matters relating to the scheme are appropriate to my colleague the Minister for Social Protection.

FIS is designed for employees on low wages and not as a support for employers. Some employees on low wages, whether employed in the public or private sector, regardless or whether or not they are employed in sectors protected by statutory minimum wages, can avail of support under the FIS scheme, provided the eligibility criteria are met.

Family Income Supplement (FIS) is a weekly tax-free payment for families, including one-parent families, at work on low pay. It is designed to make up 60% of the difference between net family income and the income limit which applies to a particular family size in order to maintain a basic standard of living. The purpose of FIS is to support families on low earnings, providing an incentive for them to remain in employment. Adjustments in earnings may affect an individual's eligibility for FIS depending on their income levels and family circumstances.