Tánaiste responds to minimum wage criticism
Tánaiste Mary Harney has rejected claims that the new minimum wage will harm the competitiveness of Irish firms.
"Companies must increase productivity to survive. I don't see any contradiction between €7 per hour and competitiveness," she said.
The Tanaiste said that Ireland would continue to generate jobs and she added that people from the 10 countries soon to join the EU are welcome to come here to find work.
The new minimum wage, up to €7 from €6.35, came into effect yesterday and was criticised last week by the Small Firms Association.
According to Pat Delaney, Director of the SFA, the impact of the increase will slow employment prospects further and will result in thousands more unskilled and part time jobs being lost.
He also had warned that employers would replace workers whose skills they felt would not merit such wages, leaving the low skilled locked out of employment.
