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Dáil Éireann debate -
Tuesday, 13 Jun 2000

Vol. 521 No. 1

Written Answers. - National Minimum Wage.

Michael D'Arcy

Question:

75 Mr. D'Arcy asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that some sectors such as hairdressing have increased their prices by as much as 25% in some cases on the basis that they are paying the minimum wage; if she will arrange to have this matter examined to ensure that prices to consumers are not being raised on the pretext of the additional costs associated with the minimum wage; and if she will make a statement on the matter. [16529/00]

Nora Owen

Question:

87 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that some sectors such as hairdressing have increased their prices by as much as 25% in some cases on the basis that they are paying the minimum wage; if she will arrange to have this matter examined to ensure that prices to consumers are not being raised on the pretext of the additional costs associated with the minimum wage; and if she will make a statement on the matter. [16555/00]

I propose to take Questions Nos. 75 and 87 together.

An ESRI study on the likely impact of the national minimum wage on employment, competitiveness and inflation concluded that the effect of the minimum wage, in raising wages, would lead to some increase in consumer prices in the services sector. The study, which was commissioned prior to the introduction of the national minimum wage, estimated that the immediate impact of the national minimum wage on inflation would be 0.26%.

I am aware the National Minimum Wage Act, 2000, had, and is having, a significant impact on the earnings of apprentice hairdressers and, accordingly, some hairdressing salons may have chosen to increase their prices to take account of increased costs. It is a matter for each individual company to decide the prices that it charges its customers and I have no power to conduct the type of examination referred to by the Deputy.

Since 1986 it has been the policy of successive Governments to promote greater competition and customer choice through, among other things, the mechanism of greater price transparency rather than through statutory price control. In relation to the hairdressing sector there is a charges display order in force which requires every person who carries on the business of hairdressing to display a notice setting out the charges for every service rendered. Complaints regarding failure to comply with any aspect of the charges display order should be brought to the attention of the Director of Consumer Affairs who enforces this order.

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