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Dáil Éireann debate -
Wednesday, 24 Mar 1999

Vol. 502 No. 4

Written Answers. - National Minimum Wage.

Liz McManus

Question:

35 Ms McManus asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress, if any, made in implementing the interim report of the interdepartmental group on the implementation of a national minimum wage; the timetable for the introduction of the national minimum wage; and if she will make a statement on the matter. [8318/99]

Jim O'Keeffe

Question:

84 Mr. J. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment the position on implementing the decision to establish a national minimum hourly wage. [8363/99]

I propose to take Questions Nos. 35 and 84 together.

The progress made in relation to the Government's commitment in its 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 a comprehensive report which was published in April 1998. It recommended, inter alia, that a target date of 1 April 2000 be set to implement the commitment to the introduction of a national minimum hourly wage. The commission's report has been the foundation upon which further progress on the introduction of a national minimum wage has been achieved.

Following receipt of the report of the National Minimum Wage Commission the Government 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 a team led by 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 submit its report at the end of this month.

The interdepartmental group submitted an interim report which was published in November 1998. The interim report outlines a range of complex issues addressed by the group some of 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 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 have been considered by the group.

Officials of my Department are currently engaged in consultations with the social partners arising from the interim report of the interdepartmental group and will report back to the group on the outcome. Drafting of the heads of the Bill is continuing. It is expected to publish the National Minimum Wage Bill as soon as possible after receipt of the final report of the interdepartmental group.
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 in April 2000.
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