Bertie Ahern (Dublin Central, Fianna Fail)

The Deputy is right. The first agreement was fairly simple as it tried to recover the country from seven years of negative growth, control the finances and have low pay agreements in return for reducing taxes and trying to stabilise the economy. Every agreement in the 18 years has been different in nature and each time we look at new challenges. This year a broad range of issues was covered under the special initiatives, including tackling education disadvantage, tackling child poverty, looking at issues on the social agenda, migration, interculturalism and trying to deal with waste and housing issues. All these issues became special initiatives under social partnership, in which the social partners could have a view, make an input and influence change.

Of course, social partnership does not eliminate industrial issues. All companies need to undergo a process of change. Managements are looking for new flexibility and new ways of doing things. Technology moves on apace. These all bring their own friction. In organisations like An Post, where the figures are unfavourable, these issues need to be addressed. At least social partnership gives a process for dealing with these issues. The benefit is that the country loses very few days due to strikes. The past few years have been very good in terms of industrial unrest and disputes. While they happen, at least in many cases they are resolved.

New challenges lie in the future. Obviously there are issues relating to competition, infrastructure and higher educational standards, in addition to issues relating to pay, sustainability of employment, continuing to generate new employment and, in particular, holding on to what we have, which is almost full employment. These issues are hugely important. When we can, we look at what we can do on taxation, welfare and health, as we did in the budget for 2005, while taking into account the issues for workers. All these matters are included and I have no doubt new issues will arise in the discussions.

In terms of timing, as always, the Minister for Finance and I will take the lead in these discussions later in the year. In the second half of the year we will put our minds to considering the basis for social partnership. Obviously, we will also deal with the issues relating small employers, farmers and major employers. All these issues will need to be taken into the mix.

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