Who will pay?

I refer to your headline article on your Thursday 17 August edition regarding the naming and shaming of firms not paying the minimum wage.

It is reassuring to hear Lord Duncan telling workers that “we have their back on this one”. I wonder, though, has anyone ever stopped to wonder if all businesses can afford to pay the minimum wage? The Federation of Small Businesses tell us that small businesses account for 99.3 per cent of private sector businesses in the UK and employ 15.7 million people. Has anyone ever asked if any of these enterprises could afford the annual increase in their wage bills that the minimum wage represents? The answer, of course, is a resounding No. In effect, businesses are being told to put up their wages regardless of how their trading figures look.

At a time when many firms are facing rising business energy costs, higher business water costs and increasing recycling charges the minimum wage is yet another cost to be borne. As the cycle of ever-increasing wages continues, any economist would tell you that unless a business is in a position to put up its prices or is able to take the extra cash from its profits the result has to be unemployment and business closure.

The study earlier this year about Seattle’s desire to pay a $15 an hour minimum wage drew attention to the fact that companies were laying off workers, reducing new hiring and cutting hours. Perhaps its time for our politicians and business “experts” to have a balanced discussion about the subject of the minimum wage and how bigger companies earning healthy profits will be more able to pay increases than the corner shop which is struggling to get by.

COLIN GREEN Victoria Road, Dumfries