Minimum Wage: economist Peter Bacon calls for reduction...

[MsAnneThrope]

...to improve Ireland's competitiveness. Bacon was speaking this morning at "The Irish Economy - What went wrong? How will we fix it?" conference, taking place in the MacGill Summer School, Glenties, Co. Donegal all this week.

Substantial economic reform needed - Peter Bacon

A reduction of wages - including the minimum wage, public sector reform, and difficulties with social welfare contributions and benefits were highlighted by Dr Peter Bacon - the economic consultant who advised the Government to set up NAMA.

The economist said the downward adjustment of nominal wages cannot be avoided and that he would not exclude the minimum wage.

He said that Colm McCarthy's An Bord Snip report should become an 'Early Bird' menu and he emphasised that reforms should happen quickly and not over a protracted period of time because that would mean dulled confidence in the Irish economy.

To put competitiveness in context it is topical at Intel today:

Concerns about competitiveness are being raised at Intel's plant in Leixlip.

It's reported that staff there have been told by management that demand for new products is not as strong as had been expected.

Other Intel plants in Arizona and Israel are now said to be surpassing Ireland in terms of competitiveness, and requirements for future projects.

[cactusflower]

I hereby call for a reduction in Peter Bacon's waist line.

[sauntersplash]

How do you get the title "Economist" in front of your name? It's like a licence to speak infallibly these days. Somebody should tell the Pope.

[odie1kanobe]

Minimum wage should only be reduced when Social Welfare rates are reduced.

[Geckko]

More fiddling around the edge.

Ireland needs to be binned and a new one started from fresh..

[powderfinger]

Does Dr.Bacon have any thoughts on the maximum wage?

[AlanOB]

Minimum wage should only be reduced when Social Welfare rates are reduced.

This.

There is already a massive disincentive to find work. Any attempt to reduce our high labour costs should be coupled with a social welfare reduction.

[Tony_1975]

More fiddling around the edge.

Ireland needs to be binned and a new one started from fresh..

As much as I hate to say it, I'd have to agree.

[toughbutfair]

We probably do need a substantial reduction in the minimum wage but the difference between it and the dole must AT LEAST be maintained.

[sharper]

It's important to note that lowering the minimum wage doesn't effect the wages of people currently on the minimum wage, it simply means that people who are currently unemployed can work at below the current rate if they so choose.