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Dáil Éireann díospóireacht -
Thursday, 10 Mar 1988

Vol. 378 No. 11

Ceisteanna—Questions. Oral Answers. - Payment of Wages.

35.

asked the Minister for Labour if he will make a statement on the Government's wishes in regard to the manner of the payment of wages.

The manner of payment of wages is at present governed by the Payment of Wages Act, 1979 which amended the Truck Acts, 1831 to 1896, so as to enable employees engaged in manual labour who are covered by those Acts to be paid their wages, otherwise than in cash, where both those employees and their employers agree.

It was considered at the time that the 1979 Act would facilitate a general move away from paying employees in cash and towards paying them by cashless means — cheque or credit transfer.

This expectation, however, has not been realised to any great extent due to a number of factors. The negotiation of new arrangements including provisions for time-off and other facilities for the cashing of cheques has proved difficult. apart from that there exists the facility to rescind a contract or agreement on payment of wages by non-cash means which gives employers who make a change in payment methods no security for the continuance of that method of payment.

An additional factor to be taken into account has been the widespread concern in recent years at the incidence of armed robberies of payroll and social welfare cash and the desirability, accordingly, of securing a reduction in the amount of cash in circulation.

A review of the 1979 Act was undertaken recently by my Department. Arising from the review a number of proposals have emerged which I included in the discussion document published at the end of November last. I am awaiting the views of interested parties, particularly the FUE and ICTU, on the various options outlined in the document. When I have concluded my examination of these views I will consider what new measures might be introduced.

Will the Minister accept that, as a fair summary of what he has said, it has been the consistent policy of successive Governments to encourage the payment of wages other than by cash and that that was endorsed by the discussion document he published just a few weeks ago? Will the Minister accept that that policy of encouraging payment of wages other than by cash has been dealt a body blow by the proposal in the budget for a £10 charge for banklink cards, pass cards and other cards? Will the Minister accept that there is a total inconsistency between the documents he is publishing urging the payment of wages other than by cash and that of the Minister for Finance who taxes people who were trying to do that?

The Deputy is injecting new matter into the question and very evidently so.

I accept that a number of Ministers for Labour have attempted to update the Truck Acts, 1831 to 1896, but they did not get very far. I am endeavouring to do the same and I hope to be able to introduce some changes in that area and make those Acts more applicable to modern times.

Will the Minister agree to have a discussion with the Minister for Finance, indicate to him the important policy issues that arise and urge on him the need, as was hinted today, to have a second look at the proposal to introduce a charge for cash dispenser cards?

I have already referred to extraneous matter.

I will endeavour to make some progress on that matter, because I accept some of the arguments made by Deputy Birmingham.

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