Martin Ferris (Kerry North, Sinn Fein)
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Question 70: To ask the Minister for Enterprise, Trade and Innovation if he will elaborate on his policy for job creation, specifically the approach recently announced by the Taoiseach to improve competitiveness by allowing wages to fall; if he intends to cut the minimum wage; and if he will make a statement on the matter. [24294/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The "Jobs and Growth 2010" policy statement, which was published in March, brings together the Government's key strategies for growth, economic renewal and the development of a sustainable, internationally trading enterprise base for the creation of jobs. The Strategy focuses on the policies and actions which are being taken in a number of critical areas. It has at its heart policies targeted at new, sustained growth in business, exports and jobs, based on increasing levels of productivity, competitiveness and innovation. These are the policies that are firmly at the top of my agenda as Minister for Enterprise, Trade & Innovation, and I believe that these policies will continue to show results.

Labour costs are an important factor. At an economy wide level, Irish labour wage rates – when adjusted for productivity – are becoming more cost competitive. The European Commission forecast that our Unit Labour Costs will fall by 9.4% over the 2009 to 2011 period, against a projected increase of 3.5% for the Eurozone. This equates to a positive swing of 13% in Ireland's favour over the three year period to 2011.

Under the National Minimum Wage Act, 2000, the Labour Court can seek to establish, in the context of such consultations, whether a general agreement can be reached between the parties. If, however, the Labour Court is satisfied that such a general agreement cannot be reached, it may still make a recommendation.

In November 2008, ICTU requested the Labour Court to review the national minimum wage and to make a recommendation to the Minister for Labour Affairs concerning its adjustment. The Court subsequently invited submissions on the issue. Various submissions were received, including from IBEC, ICTU and the Department of Finance. The Labour Court also held discussions with these parties.

The Labour Court has not yet made a recommendation in relation to the application made under the National Minimum Wage Act, 2000. It would be inappropriate for me to comment further while the matter is still under consideration by the Court.