McGrath opposes Bill to cut wages in Dáil vote

TIPPERARY SOUTH Fianna Fáil TD Mattie McGrath voted against the Government’s legislation reducing the minimum wage.

Despite his defection, the Financial Emergency Measures in the Public Interest (No 2) Bill, which also cuts ministerial salaries and public service pensions, was comfortably passed by 79 votes to 74 and now goes to the Seanad.

Mr McGrath’s vote came as a surprise, given that he had earlier joined his Fianna Fáil colleagues and the Green Party in voting through the Bill’s second stage.

He also voted with the Government in a series of divisions on the Budget last Tuesday.

Mr McGrath was already without the parliamentary party whip because of his opposition to the Stag Hunting Bill.

Minister for Finance Brian Lenihan defended the reduction in the minimum wage in the face of strong Opposition criticism.

Understandably, he said, the reduction for new entrants to the labour market had caused much comment. Ireland had the second-highest rate in the EU, he added.

“Members must accept that this is no longer sustainable, given the economic crisis which has pushed unemployment to new levels,’’ he added. “The policies introduced in the boom years, which contributed a great deal to pushing up the cost of employment and reducing Ireland’s competitiveness, cannot be maintained.’’

Leo Varadkar (FG) asked how the Government could justify increases of three per cent and more to workers in the semi-State companies and the banks when it used emergency legislation to cut the minimum wage.

No other country had ever reduced the minimum wage, he said. “The leaders who people like to suggest are betes noires, such as Reagan and Thatcher, did not cut the minimum wage,’’ Mr Varadkar added.

“This will be the first government in the history of the world to reduce the minimum wage, with the possible exception of Pinochet’s Chile.’’

Róisín Shortall (Labour) said there was no question of the reduction being relevant to competitiveness, “a lie which has been peddled in recent times’’.

Cutting the minimum wage would make no difference to exchequer finances, Ms Shortall added.

She challenged the Fianna Fáil backbenchers, the Green Party “and those three amigos at the back, the Ballymagash politicians, Deputies Jackie Healy-Rae, Michael Lowry and Joe Behan’’, to oppose the cut.

Green Party TD Paul Gogarty said he was in favour of a Labour Party amendment copperfastening the payment of the minimum wage to those already in employment, given that there seemed to be nothing written in stone to protect such workers.

“However, if there is to be a vote, I will vote against it because of the way the system operates,’’ he added.

Ms Shortall said Mr Gogarty was a fraud.

Dr James Reilly (FG) referred to “the ability of people on the Government side to stand up and wax lyrical in support of an amendment and vote against it’’.

Martin Ferris (SF) said Mr Gogarty was obviously prompted by his conscience.

“I believe one must always be guided by one’s conscience and take a principled stand, if necessary, to protect one’s conscience,’’ he added.

Pearse Doherty (SF) said the spirit of the Labour amendment was to protect those in existing contracts and he supported it.

Mr Gogarty, he said, was ready to support a “morally corrupt’’ measure.

“The Deputy is measuring moral corruption,’’ replied Mr Gogarty. “Let us have the economic argument rather than try to raise populist indignation.’’

Pointing to Ministers of State Martin Mansergh and Dara Calleary, Mr Doherty said: “Since the two Ministers of State came into this chamber two hours ago, they have earned half of what those on the minimum wage will earn in a full week.’’