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Dáil Éireann debate -
Tuesday, 16 Feb 1999

Vol. 500 No. 4

Written Answers. - National Minimum Wage.

Jim Mitchell

Question:

67 Mr. J. Mitchell asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has received a report on the implementation of a minimum wage; and when she will bring forward legislation on the matter. [4169/99]

Michael D. Higgins

Question:

83 Mr. M. Higgins asked the Tánaiste and Minister for Enterprise, Trade and Employment when draft legislation will be available on the implementation of the national minimum wage; when she will circulate this draft legislation to the social partners; and if she will make a statement on the matter. [4156/99]

Ivor Callely

Question:

84 Mr. Callely asked the Tánaiste and Minister for Enterprise, Trade and Employment the impact a minimum wage agreement will have on employment; the effect a minimum wage agreement may have on the services sector where apprenticeships and training are involved in view of the fact these apprentices and trainees are in receipt of a nominal payment while in apprenticeship and training; and if she will make a statement on the matter. [4254/99]

John Gormley

Question:

86 Mr. Gormley asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on the progress in relation to the introduction of the national minimum wage; and if she will make a statement on the matter. [2514/99]

Nora Owen

Question:

111 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has received a report on the implementation of a minimum wage; and when she will bring forward legislation on the matter. [4189/99]

I propose to take Questions Nos. 67, 83, 84, 86 and 111 together.

The progress made in relation to the Government's commitment in our programme for Government to introduce a national minimum hourly wage has been considerable. One of my first tasks as Minister for Enterprise, Trade and Employment was to establish the National Minimum Wage Commission to advise on the best way to implement our commitment to a national minimum wage.

The commission produced, in a very short time, a comprehensive report which published in April 1998. It recommended, inter alia, that a target date of 1 April 2000 be set to implement the commitment to a national minimum hourly wage. The commission's report has been the foundation upon which further progress on the introductionof a national minimum wage has been achieved.

At its meeting on the 31 March 1998 the Government considered the report of the commission and approved the establishment of an interdepartmental group of officials to assist in formulating proposals and a plan of action on implementation.

The group has commissioned the Economic and Social Research Institute to undertake a comprehensive study of the likely impact on those sectors of the economy most affected by a national minimum wage and on the economy as a whole. The information obtained will allow the group to assess the recommendation of the commission, that the initial rate set should take into account employment, overall economic conditions and competitiveness. The ESRI is expected to complete its final report in March.

The interdepartmental group submitted an interim report and this was published in November 1998. The interim report outlines a range of complex issues addressed by the group which require further analysis and consideration including the scope of the national minimum wage, variations, options for enforcement and the need to ensure that claims for the restoration of relative pay differentials, following its introduction, are not entertained. The work of this group is building on the very valuable work of the National Minimum Wage Commission.

The interim report identified a number of issues that should be the subject of consultations with the social partners. The interdepartmental group also invited written submissions on its interim report from interested parties and these submissions are being considered by the group.

Officials of my Department are currently engaged in consultations with the social partners and have commenced drafting the heads of the Bill. It is expected to publish the National Minimum Wage Bill as soon as possible after receipt of the final report of the interdepartmental group in May. Consultations with the Social partners will continue to be an integral part of the process of bringing forward the legislation to implement a national minimum wage.
As to the impact of a national minimum wage on employment, this ultimately depends on the minimum wage structure adopted and the rates applied within that structure. Both the National Minimum Wage Commission and the interdepartmental group have addressed this important issue. The results of the study undertaken by the ESRI for the interdepartmental group will provide significant information as to the possible impact on work incentives, labour demand and labour supply responses. In relation to apprenticeships and training, the commission recommended that reduced rates should apply to workers who are apprentices or trainees subject to certain conditions and safegurds. The interim report of the interdepartmental group discussed certain principles on the treatment of apprentices and trainees under a national minimum wage regime. The group will give further consideration to the treatment of apprentices and trainees in its final report.
These developments clearly illustrate and underpin the Government's commitment to the introduction of a national minimum wage in order to protect workers who are vulnerable and prone to be exploited while ensuring that its introduction does not impair the competitiveness of the economy. I intend to have a statutory national minimum wage of £4.40 per hour in place by the target timescale recommended by the National Minimum Wage Commission on the expiry of Partnership 2000, beginning in April 2000.
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