Gerald Nash (Louth, Labour)
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Yes, and also from a competitiveness point of view. We take into account the arrangements in states across the European Union and particularly those closer to us. Traditionally we have had particular processes and wage-setting mechanisms here. I note that the UK decided to rid itself of those a number of years ago. We feel it is in the public interest. The test applied to harmonious industrial relations is whether it is in the public interest to engage in agreements of this type. Ultimately, that test is considered by the Labour Court. It is the Labour Court that will decide whether to recommend the registration of an agreement based on that test. It is matter for the court to decide.

There are a range of different wage-setting mechanisms across the European Union. Different states have their own way of doing this. We have made our own decision to proceed with legislation based on the fact that the superior court struck down the former wage-setting mechanism regime. There are a range of different systems across the European Union, some of which are similar to those operated here previously, before the legislation was struck down by the courts. We have looked at the judgments that were handed down, obviously on the advice of the Attorney General, on plugging those gaps and making sure that what we have now is robust draft legislation - on which I welcome members' comments - which I think will be accepted and supported by stakeholders right across industry.