Bertie Ahern (Dublin Central, Fianna Fail)

I propose to take Questions Nos. 1 to 14, inclusive, together.

In June we successfully concluded an agreement on pay and workplace related issues to cover the second half of the lifetime of Sustaining Progress. The agreement provides for a general round of pay increases in the private sector totalling 5.5% over 18 months, with an additional 0.5% increase for workers earning less than €9 per hour or €351 per week. The same increases will apply to the public service, commencing on 1 June 2005. There is also a commitment to review the national minimum wage and provision for increasing the weekly ceiling for the calculation of redundancy payments by almost €100 to €600, with effect from 1 January 2005.

Among the workplace related elements covered in the agreement are an increase in maternity benefit from its current level of 70% of earnings to 80% over the lifetime of the agreement; co-operation between the parties to the agreement to address concerns relating to pensions provision, in particular, the need to increase the take-up of pensions across the economy; the further development of partnership and learning in the workplace; a continuing focus on inflation and excessive prices; and ongoing consultation on the development of workplace legislation and codes.

The agreement represents a fair deal for all concerned and this has been borne out by its ratification by the parties' respective memberships. The agreement will serve to underpin our model of social cohesion, facilitate economic growth and maintain the industrial relations stability of recent years.

This completed review of pay and related matters in part two of Sustaining Progress complements more generally the mid-term review of Sustaining Progress which had a number of dimensions, namely, formal consideration of progress in the steering group for the programme; bilateral discussions between officials and the social partner pillars on matters of particular concern to each pillar; a separate progress report on the ten special initiatives set out in Sustaining Progress; a fifth progress report to the plenary meeting, including the report of the parties to the agreement and the steering group; and the statements on behalf of the Government by me, the Tánaiste and the Minister for Finance and the responses from each pillar at the plenary meeting on 13 July last. Copies of all the relevant progress reports and speeches have been placed in the Oireachtas Library.

The plenary meeting provided an opportunity to discuss the overall assessment of progress during the first half of the agreement and the key priorities for attention during the remainder of Sustaining Progress. The meeting also afforded an opportunity to hear at first hand and acknowledge the particular concerns of each of the social partner pillars. Housing and tackling educational disadvantage are two of the special initiatives under the agreement. Progress on these initiatives was noted in the context of the progress report on the ten special initiatives published as part of the mid-term review of Sustaining Progress.

I express my appreciation of the positive contributions made by those on all sides who contributed to the successful mid-term review. I emphasise the Government's continued commitment to pursuing our nation's well-being and prosperity through the process of social dialogue and I look forward to this ongoing dialogue on items of mutual interest.

The next quarterly plenary meeting of the social partners is set to take place later this month and a presentation by the Department of Finance on the medium-term economic outlook will be a key feature. Formal meetings such as these complement the meetings I hold with representatives of the social partners on a regular basis. I will continue to meet the social partners regularly and as required over the remainder of the lifetime of Sustaining Progress.

The national implementation body, which includes employer and union representatives, operates under the chairmanship of my Department. The body met on three occasions during August of this year to consider ongoing and threatened industrial action in the private and commercial semi-State sectors. It will continue to meet as necessary to consider the implications of ongoing disputes of particular significance. Meetings of the body also provide opportunities for informal discussion of the broader issues relating to the social partnership process, from the employer and trade union perspectives.

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