Dáil Éireann díospóireacht -
Wednesday, 1 Dec 1993

Vol. 436 No. 5

Written Answers. - Average Irish Wages.

Alan Shatter

Ceist:

34 Mr. Shatter asked the Minister for Enterprise and Employment if he has studied figures on comparisons of average Irish wages to those in other countries which shows Ireland now has higher wage levels than in many of the most advanced countries in Europe; and whether this necessitates a change in employment strategy.

Minister for Enterprise and Employment (Mr. Quinn)

The latest information available to me indicates that, in absolute terms, Ireland's labour costs in manufacturing are at the lower end of the member states of the European Union.

Hourly manufacturing earnings in national currency terms are expected to increase faster in Ireland in 1993 than among most of our main trading partners. However, this should be offset by the impact of the end-January devaluation and there should be strong competitiveness gains against our main trading partners other than the United Kingdom. A loss of labour competitiveness of about 1 per cent is expected against the United Kingdom.

The main policy implication of these developments is that it is vital that Ireland remains competitive in its labour costs, particularlyvis-á-vis the United Kingdom.