Creighton calls for review of minimum wage to aid firms

A CALL has been made for the Government to review the minimum wage “in an effort to help struggling small and medium-sized businesses”. Lucinda Creighton (FG, Dublin South-East) said the minimum wage in Ireland at €8.65 “is the second highest in the EU” and higher than Ireland’s nearest trading partner, the UK. She said the rate was not sustainable.

Businesses “simply can’t afford to pay it and are making people redundant as a result. We have reached a point where the minimum wage is now adding to the unemployment crisis,” she said. The minimum wage rate should be immediately reviewed “in line with falling wages in the private sector and deflation in the larger economy. In addition, it is essential that we continue to review the rate annually thereafter to stay competitive.”

Ms Creighton was speaking during a debate on the Fine Gael private members’ motion calling for a loan guarantee scheme for small and medium-sized enterprises. Introducing the motion, John Perry (FG, Sligo-North Leitrim) said “a wall of cash was provided to bail out the banks” but the banks “are standing guard in front of it. Cash is not being made available to businesses on the ground”. Mr Perry described as “outrageous” comments by Minister for Enterprise Batt O’Keeffe that Fine Gael’s proposal for a loan guarantee scheme was “letting the banks off the hook”.

Fine Gael enterprise spokesman Richard Bruton said the banks “are not in a position to take a punt on a bright-spark entrepreneurial idea. They are about trying to survive themselves and shrink their loan book relative to deposits”.

He asked the Government: “When are you going to wake up and realise that you have a banking strategy that is not providing credit?”

Margaret Conlon (FF, Cavan-Monaghan) suggested a “rates holiday” for businesses. “We’ve no provision for rates holidays or deferred payment schemes and I think it’s an area that should be looked at”.

The Government defeated the Fine Gael motion by a total of 78 votes to 72.