As the Deputy is aware, following receipt of the Report of the National Minimum Wage Commission earlier this year an interdepartmental group was established by the Government to assist in formulating proposals and a plan of action. A number of Departments, including the Department of Finance, are represented on the group.
As regards the implications of the minimum wage, the National Minimum Wage Commission did not examine the economic or budgetary effects of its recommended rate of £4.40 but advised that this rate should take account of employment, overall economic conditions and competitiveness. In order to prepare an appropriate plan of action, the group has commissioned independent consultants to undertake a comprehensive study of the impact of the recommended rate on competitiveness and employment, as well as those sectors most affected. The study will also provide an analysis of the extent of the dynamic economic effects.
I can assure the Deputy that my Department is participating fully on the group. I understand that the group will be submitting an interim report to the Government in the near future.