Brian Cowen (Laois-Offaly, Fianna Fail)

I am pleased to have this opportunity to update the House on the position regarding the decentralisation of FÁS. Under the Government's decentralisation programme, FÁS is due to move its head office to Birr, County Offaly. FÁS is one of the seven State agencies identified as early movers by the decentralisation implementation group from among the 30 agencies covered by the programme.

It would be helpful to refer to the Labour Court recommendation to which the Deputy refers. In its recommendation in a dispute between SIPTU and FÁS concerning decentralisation and FÁS contracts of employment, the Labour Court considered the written and oral submissions of the parties. The court also noted the terms of the company and union industrial relations procedures agreement and stated it was of the opinion that FÁS was in breach of the consultation procedures provided for in that agreement. However, it made no ruling on the substantive issue of the relocation clause. Instead, it recommended that the matter be referred back to the appropriate central body, at which level the issues should be teased out with a view to arriving at agreed long-term solutions in consultation with all of the parties involved.

Before Easter, discussions between the parties were held on two occasions under the auspices of the Labour Relations Commission, LRC, to see whether progress could be made. Media comment by SIPTU suggested that an initial agreement was reached at the Labour Relations Commission from which the Department of Finance subsequently withdrew. I want to clarify that no agreement was reached at the LRC between the parties at any stage during the discussions. At the first session, a draft text was prepared by the industrial relations officer following a series of discussions with both sides. However, this written text was not seen by the employer side before it was presented to the union.

Differences remain between the parties which must be addressed through further dialogue. It would not be helpful at this point to get into details on the elements of the negotiations. Naturally, I strongly support using all the established consultation and dialogue mechanisms and I hope that further discussions will lead to a resolution.

Decentralisation is a voluntary programme. From the outset, guarantees have been given by the Government that all employees not wishing to transfer out of Dublin will be facilitated with an alternative post in Dublin if the situation arises. Promotions policy must take account of the reality of decentralisation.

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