ISME attacks minimum wage rise

THE latest rise in the minimum wage will have a "devastating" effect on small business, delegates at lobby group ISME's business briefing session heard yesterday.

ISME chief executive Mark Fielding called on the Government to scrap the minimum wage in favour of tax reform to meet the needs of low-paid workers and encourage businesses to take on staff. Mr Fielding said small businesses were unable to cope with the extra cost of the new minimum wage, relying on easy access to affordable part-time workers. He added that small businesses would be forced to cut jobs and reduce hours in order to meet higher wage bills since the €7 per hour minimum was brought in.

"If the Government is serious about addressing the needs of those on low incomes, they should introduce an incomes policy that will allow workers earn an income of €18,500 tax free. This will have multiple benefits, it will increase the incentive to work, remove people from the social welfare trap and decrease the numbers working in the black economy."