Vol. 490 No. 2
78 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the estimated cost to the Government of the implementation of the recommendations of the Minimum Wage Commission; and if she will make a statement on the matter. [9738/98]
79 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will commission a full independent economic assessment of the implications for the various sectors of the economy of the introduction of a minimum wage before she introduces the necessary legislation in this area. [9755/98]
80 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has considered the implications of a minimum wage on industrial relations with particular reference to the knock-on effect to other employees currently earning in excess of the proposed minimum wage rate; and if she will make a statement on the matter. [9756/98]
I propose to take Questions Nos. 78, 79 and 80 together.
The Government is pleased to be able to deliver the commission's report, the first stage in the process of fulfilling its commitments to introduce a national minimum hourly rate, and welcomes the commission's fundamental recommendation that there should be a single rate for all adults. The Government notes the recommendation of the National Minimum Wage Commission that the initial rate should be set at around two-thirds of median earnings but that it should take into account issues of employment, overall economic conditions and competitiveness.
An interdepartmental working group, representative of the principal Departments involved, has been established to assist in formulating proposals and an implementation plan and to come back to Government as early as possible. The Interdepartmental committee will study the issues, including economic impacts and costs, arising from the commission's recommendations. Consultations will also need to take place with the social partners and, indeed, I believe the initial rate should be struck in the context of negotiations on a successor to Partnership 2000.
I agree with the commission view that both the recommended structure and level of the minimum wage should take account of the needs of the most sensitive sectors to remain competitive. The knock-on effect of the introduction of a minimum wage and how effectively to control such effects — a matter in which the commission has made some suggestions — would also be an important element in consultation with the social partners.
