Cowen silent on who demanded minimum wage cut

SPECULATION that a minimum wage cut was imposed because of demands from the European Union intensified after Taoiseach, Brian Cowen, avoided Dáil questions about who requested the move.

Labour leader Eamon Gilmore said the €1 cut from €8.65 to €7.65 an hour will end up costing the state more in welfare benefits and “won’t save a single cent for the exchequer”.

Last week Green Party leader John Gormley told the Dáil the cut was the first demand of EU Commissioner Ollli Rehn “and others” when discussions on a possible bailout for Ireland were taking place.