Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This agreement, which has been adopted by the public services committee of congress and which we are giving effect to in law today, takes us up to the end of next year. I anticipate that in advance of that we will again engage with the trade union movement on a possible successor agreement. We are reverting to a more normal era of industrial relations and hopefully agreeing pay deals into the future. It is in the interests of all concerned if we can do it in an orderly way and give public servants certainty about their own pay. From the State's point of view, having stability and certainty in our overall public service pay bill for a period ahead is also an important part of managing the public finances for the future.

This is a relatively short agreement, shorter than some previous agreements in recent times. That is appropriate because we are coming through a time of enormous change. As the Deputy acknowledged, public servants have stepped up to the mark over the past 15 months or so. They see this as a transitional agreement. The expectation would be that in advance of the end of next year, we will be talking again. Considerable work remains to be done in giving effect to this agreement.

As the Deputy knows, we have the sectoral bargaining process, which is innovative. We are in the process of establishing the sectorial bargaining units and we hope that can help to address issues that would be regarded as outstanding by the trade union representatives. That is a new innovative process. We have provided for an amount equivalent to 1% of the overall pay bill. In addition to the 1% increases this October and next October, there are also proposals related to the Haddington Road agreement. We have appointed Kieran Mulvey as chairperson, and the independent trade union members of that committee. That work will be getting under way. We have allocated €150 million to make progress on recommendations arising from the output of that group in due course.