Mr. Owen Reidy:

I think the directive clearly requires new legislation because the State does not promote collective bargaining currently and it needs to as per the directive. The second thing is that workers and unions are acutely aware of competitiveness and support entrepreneurship and competitiveness. Productivity is a key issue for us as it is for employers but let me set out a couple of facts. Employers in this State pay PRSI that is less than half of their European peers. Most of the changes the Government has brought in around sick pay and things like that are modestly trying to bring us up to the European average. What workers say to us is that we pay European taxes - 98% of the value of taxes in other wealthy European countries - but we are not getting European services.

Regarding the last thing the Deputy said about the public sector, I would suggest that he is making my argument. Pay might be higher in the public sector. Why? It is because it is more organised and there is collective bargaining. I would like to see pay in the private sector being higher but supported by productivity. You cannot get blood from a stone. I appreciate that but we do not want to do that.