Madam, – Michael McNamara (January 29th) compares the Irish and UK minimum hourly wage by using the current exchange rate, when he should at least use an average of rates over a reasonable time span to avoid the bias resulting from using a rate which is at a historical low.
It should also be pointed out that UK corporation tax is 28 per cent, with a 21 per cent rate for small companies, whereas Irish companies pay only 12.5 per cent.
UK employees earning the minimum wage have access to a more efficient and comprehensive health service than is available to Irish employees and, as many price comparisons have shown, the cost of living is significantly lower in the UK than in Ireland.
Our higher minimum wage has not deterred most British retailers from operating here and there is evidence that many of them enjoy higher profit margins from their Irish operations.
Those advocating a lower minimum wage always take a simplistic approach designed to further their own interests or confirm their prejudices, rather than presenting a comprehensive picture of economic conditions in Ireland.
– Yours, etc,