Paul Murphy demands urgent minimum wage review amid housing crisis
Paul Murphy challenged the Taoiseach on the adequacy of the minimum wage and the impact of rising housing costs. He said the minimum wage is a poverty wage, urged a move to 15 euros an hour and called for an emergency review to protect workers.
Call for higher minimum wage
The deputy argued that many retail and hospitality workers who kept society running during the pandemic remain on the minimum wage and cannot afford basic living costs. He highlighted that the average cost of a one-bed apartment in Dublin is about 1,600 euros a month while a full-time minimum wage worker earns less than 1,700 euros.
Comparisons with other countries and proposals
The deputy referenced the German government’s plan to increase its minimum wage to 12 euros from October and asked whether the government would follow or go further. He promoted People Before Profit’s proposal to move to 15 euros an hour - the equivalent of 30,000 euros a year for a full-time worker - and asked the Taoiseach to accept a motion by Mick Barry for an emergency review of the minimum wage to ensure it keeps pace with inflation.
Government response and economic data
The Taoiseach responded that the country’s minimum wage is the second-highest in Europe and, on a purchasing-power basis, the sixth highest in the EU. He said the government supports wage increases linked to productivity, noted pay has risen over the last 12 months, cited a central bank projection of over 7% domestic growth and predicted wages will outpace prices over the next three years, and pointed to unemployment falling to 7.8% from above 20% in November 2020.
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Richard, retail and hospitality workers were applauded over the last two years for helping to keep society running during the pandemic. Do you agree that those workers deserve a raise? Very many of them would be on the minimum wage. The minimum wage in this country is a poverty wage. Do you think that's okay? Do you think it's acceptable that someone should work full time and still be below the poverty line? The average cost, for example, of a one-bed apartment in Dublin now is about 1,600 euros a month. A full-time minimum wage worker earns less than 1,700 euros. How can someone be expected to survive on that income, Taoiseach? Would you survive on that income? The German government has announced that they will be increasing the minimum wage to 12 euros from October. Will you do the same? Will you go further? Will you agree with People Before Profit's proposal that we should move to 15 euros an hour? That's the equivalent of 30,000 euros a year for a full-time worker. At the very minimum, will you accept the motion brought forward by Mick Barry to have an emergency review of the minimum wage now to ensure that it is above the rate of inflation? It is not on the right. I am an opposing counsel. Mr. Debbie Murphy raised the issue of retail and hospitality workers. Again, just on the minimum wage, ours is the second-highest in Europe right now. Even if we take purchasing power, we are the sixth highest in the European Union. I think we need balance. We are above the average European wage. wage. Again, we support wage increases, particularly linked to productivity. We don't want to go chasing inflation forever because that doesn't work, but we do believe we can do measures that will help people on low incomes, and that's something we are working on. And likewise, in terms of Deputy Barry, again, you're misrepresenting what I've said, that that's par for the course, but in terms of the de facto situation around pay and that, again, pay has increased. In terms of pay more generally, it has increased over the last 12 months. I had a figure here for it in terms of the growth in pay more generally. The central bank is expecting the domestic economy to go over 7%. It's projecting that wage rises will outpace price increases over the next three years. That's what the central bank is predicting, notwithstanding the spike in inflation this year. The most important figure, though, is unemployment is 7.8%. The rate was above 20% in November 2020. An extraordinary recovery in our economy, which one wouldn't. Well, it's been an extraordinary recovery. Employment is the best way out.
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