Harney refuses to rule out cuts in minimum wage

The Minister for Health has refused to rule out a reduction in the minimum wage.

Mary Harney said that that for Ireland to remain competitive in spite of current economic difficulties, every option must remain on the table.

Ms Harney was speaking following comments by economist Peter Bacon, who said downward adjustments of the minimum wage could not be avoided.

Minister Harney, who introduced the national minimum wage when she was Tánaiste in 2000, said nothing can be ruled out.

"Clearly, we have to remain competitive in Ireland," the minister said.

"The minimum wage is the base wage in this country. If, for example, we're going to contemplate cutting social welfare payments in the context of the very serious budgetary situation we find ourselves in, then I think everything has to be examined quite honestly.

"Given the economic challenges that this country faces, everything has to be on the table."