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

There is no agreement at this point so there is no basis for answering the question. We hope to re-engage and there are ongoing contacts with the Workplace Relations Commission. It will advise us of its opinion as to whether there is a basis to re-engage formally. This is certainly our objective. Securing an agreement would help to bring industrial peace and give certainty about approximately one third of our current expenditure pay bill. It is the case that whatever is agreed, and I hope an agreement can be reached, will come out of the overall envelope of approximately €2.7 billion. As I have said in recent weeks, we have identified approximately €400 million for early implementation measures in the current year. This could be a combination of changes in public service pay in the current year and any decision the Government might make to implement immediately changes on the core permanent side of expenditure, such as happened with the fuel allowance last year. The envelope is the envelope and I want to be clear on that. The cost of any public service pay bill and all of the other Government priorities in the budget will have to be met from within that overall amount.