ED’s top two vote against rise in minimum wage

Proposing the changes, Employment & Social Security president Deputy Peter Roffey said it was ‘absolutely routine’ to put the adult rate up from £9.55 to £10.65 per hour, as this was in line with States policy.

This is the penultimate year of a five-year process of lifting minimum pay rates to 60% of median earnings.

He described this as a ‘catching-up exercise’ because other jurisdictions, such as Jersey, were already there, but would probably have moved forward by the time Guernsey reached the same rate.

Economic Development member Deputy Sasha Kazantseva-Miller expressed her concerns that the proposals were not evidence-based, as members had insufficient information before them.

‘We have absolutely no idea how many people are on the minimum wage, how many employers are paying it, or how many who are on it are accessing income support,’ she said.

Despite these concerns, she voted to approve, whereas vice-president Deputy Simon Vermeulen voted against.

He had his ‘finger on the pulse in Guernsey’ he said, and knew that businesses were ‘feeling the headwinds’, and felt unable to invest.

Financial constraints meant people were only going out to eat once a week rather than three times, he said.

He said hospitality employers were warning that ‘you’re going to have the £10 pint and the £25 burger’ if above-inflation minimum wage rises continued as planned.

Economic Development president Deputy Neil Inder claimed the proposed rise was part of ‘an ideological drive toward 60%’ that had no supporting evidence.

He highlighted the results of a consultation with industries, which he said showed strong objections from those which were most affected, including construction and hospitality.

‘I cannot support this, because I think it just adds to the problem,’ he said.

Contrastingly, Deputy Marc Leadbeater doubted whether the rise was sufficient and questioned the veracity of the fears expressed by employers.

‘I don’t know many people who own hospitality businesses that are skint,’ he said.

The proposals, which also saw the rate for 16- and 17-year-olds rise to £9.65 an hour, were carried by 37 votes to two.