Gerald Nash (Louth, Labour)
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58. To ask the Minister for Enterprise, Trade and Employment if he remains committed to the agreed pathway for the implementation of a living wage; and if he will make a statement on the matter. [17196/24]

Gerald Nash (Louth, Labour)
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First, I congratulate the Minister, Deputy Peter Burke, on his appointment as Minister for Enterprise, Trade and Employment, the Minister of State, Deputy Higgins, on her appointment, and the Minister of State, Deputy Calleary, on his reappointment. Congratulations to all.

I ask the Minister if he is still committed to the roadmap and the pathway to a living wage, as set out by the Low Pay Commission in its annual report in mid-2023 and that he will not demur from this commitment.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank Deputy Nash for his kind words.

As the Deputy will be aware, in 2021 the Low Pay Commission was asked to examine the programme for Government commitment to progress to a living wage and provide recommendations on how best to achieve this commitment. The Low Pay Commission’s recommendations were received and considered and in November 2022, the Government agreed that a national living wage would be introduced and set at 60% of the hourly median wages, in line with the recommendations of the Low Pay Commission. The Government announced that this would be achieved by incremental adjustment to the national minimum wage.

The introduction of a living wage is an important step the Government is taking towards eradicating low-wage employment for all workers. The first step towards reaching a living wage was the 80 cent increase to the national minimum wage from 1 January 2023, to €11.30 per hour. This was followed with the significant 12.4% increase of €1.40 to the national minimum wage, which came into force on 1 January 2024 and increased the minimum wage to €12.70 per hour. The Low Pay Commission has estimated that the minimum wage in 2022 was 50.9% of the median hourly wage, increasing to 51.8% in 2023. The Commission estimates that the €1.40 increase in the 2024 national minimum wage brought the minimum wage to 55.1% of median hourly wages. The Low Pay Commission will continue to make annual recommendations on the appropriate rate of the national minimum wage, and the increases required in order that by 2026, the minimum wage will reach the target of 60% of hourly median wages. Its recommendations on the 2025 national minimum wage are due in July.

The Government is on track with the implementation of the living wage but it is also important to acknowledge the challenges the enterprise sector has faced over the last number of years, and I am aware of the concerns of businesses as they deal with the rising cost of doing business. I am bringing forward a range of packages to help small businesses in adjusting to the increased costs of the proposed measures to improve working conditions in Ireland and to help improve their cost effectiveness.

Gerald Nash (Louth, Labour)
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There is no doubt that some small businesses are experiencing difficulties at the moment. There will be challenges for businesses to wean themselves off the kind of corporate welfare that has been available over the last few years to maintain the viability of businesses. However, this should not be done at the expense of low-paid workers. We have a problem with low pay in this country. More than 20% of all workers are on low pay. This is not sustainable and is not something that we should stand over. The establishment of the Low Pay Commission in 2015 was one of the most important institutional changes to protect the interests of low-paid workers that society experienced in many years. I have no doubt that the Low Pay Commission, given the importance of its work, will be a bulwark against attempts to undermine the interests of low-paid workers. I stand over the statement I am about to make. I do not believe that in the absence of the Low Pay Commission, Fine Gael and Fianna Fáil would have increased the minimum wage to the point it is at now. Moreover, I would not see a situation where we are moving towards 60% of median hourly wages in terms of real living wage into the future, if it were not for the Low Pay Commission. I ask the Minister to restate his commitment to the pathway to the living wage and not in any way undermine its importance and independence.

Peter Burke (Longford-Westmeath, Fine Gael)
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The Low Pay Commission was established by a Government of which my own party was a member. This shows we are very committed to employees right across the economy. On an objective analysis, last night we voted for auto enrolment to ensure pension rights to those right across our economy. The most vulnerable will benefit. We also introduced sick pay on a statutory basis, which will also help those on the margins of society. If we look at any objective analysis, from 2015 the national minimum wage has increased by 46.8%. That really shows how much we value workers right across our economy. This Government has done a huge amount more in terms of protected leave and the right to remote working. The latter may not affect so many on lower wages, but we are doing everything we can to improve conditions for workers. We know that productivity, morale and retention of staff are key. That is coming across in the economy as well. Equally, we have to respond to the challenges faced by businesses. I will be doing that in the days and weeks ahead working on a package with my three colleagues.

Gerald Nash (Louth, Labour)
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The ambition of the new Taoiseach to reset the messaging for Fine Gael and to go back to basics, as some people have described it, is worrying for working people across the country. This is especially the case if it is framed through the lens of worker versus business. That should not be the case. Quite frankly, however, that is how the mood music is being set. This is especially the case with comments made in recent weeks about, for example, the question of the extension of modest sick leave proposals to bring us in line with EU states against whom we like to compare ourselves. These are modest changes, yet some employer groups are saying, with a straight face, that the national minimum wage should not go up by any more than the rate of inflation. This is unacceptable to me and I hope it is unacceptable to the Minister. I would like the Minister to put on record his views on the proposition that some employer bodies are saying that, as far as they are concerned, the minimum wage should not increase by any more than the rate of inflation. What is the Minister's position on this proposition?

Peter Burke (Longford-Westmeath, Fine Gael)
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I am in a Department where we have to balance the rights of employers and protect employees. I have to protect the rights of consumers and balance that with the rights of businesses. We have to be in a very strong position to protect all those across our economy. I would say, demonstrate by evidence. This Government has shown huge evidence. We have been a reforming Government, in line with protecting employees right across our economy. Very significant changes and reforms have been made and we will take advice from the Low Pay Commission. That is the mechanism put in place to advise me in July in relation to the continuation of the trajectory and how much of an increase should be brought forward. We will consider the advice and take it very seriously. The Government, so far, has always accepted the recommendation from the Low Pay Commission. It is best to work through that mechanism. I will always say our commitment can be demonstrated by our actions. The rate of inflation has halved since November 2022, down to 4.1%. This shows that the policies are working. Two budgets prior to 2024, we put €12 billion into our economy protecting workers businesses, workers and the most vulnerable. Sustainable policies enable the Government to do just that.