Bertie Ahern (Dublin Central, Fianna Fail)

I propose to take Questions Nos. 1 to 9, inclusive, together.

Discussions with the social partners continued up to Easter and resumed after the Easter break. Until recently, the first strand of the negotiations on pay and related matters focussed on concerns about maintaining and protecting employment standards in the context of a rapidly changing labour market, especially in light of the enlargement of the EU. A great deal of time and effort was devoted to addressing the important and complex issues involved. In particular, great efforts were made to strike the right balance between ensuring decent employment standards and maintaining competitiveness, flexibility and attractiveness to investment. An emerging package of measures has been identified, although more work needs to be done. I believe we can agree measures, in the context of a new agreement, which will provide the necessary strong protection for employment standards while ensuring Ireland continues to offer an excellent environment for business and job creation. As the House is aware, the executive council of the Irish Congress of Trade Unions agreed on 26 April that sufficient progress had been made in this area to allow the talks to address pay matters and other workplace related issues. A number of plenary and bilateral meetings, involving the Irish Business and Employers Confederation, the Construction Industry Federation and the Irish Congress of Trade Unions, have since taken place on such matters.

I hope we can make further progress in the talks so we can conclude the overall negotiations over the next few days. However, I have been advised that there is a considerable difference between the sides on the parameters of a pay agreement, as well as on some significant non-pay items. It is far from clear that an agreement can be reached. I have always believed that no agreement is better than one which is wrong in terms of the sustainability of jobs and living standards. I would greatly regret any failure to conclude an agreement that continues the benefits the country has gained from past agreements. However, the parties need to decide whether they can agree terms. As an employer, the Government has a view on what is sustainable, a view which is being reflected in the talks. I urge all parties to be flexible and creative in negotiating an agreement that is consistent with our genuinely shared concerns about employment, living standards and the quality of life of our people.

The House will be aware that the parallel talks within the wider non-pay strand have been focussing on the implications of the proposed longer-term framework for social partnership, the macroeconomic context for the duration of a new agreement and the economic, environmental, infrastructural and social policy priorities within a new agreement, where the social partners have agreed that a longer-term perspective is appropriate for full implementation. While I have not been directly involved since the initial plenary meeting on 2 February last, I have been kept fully informed by the Secretary General of the Department of the Taoiseach, who is chairing the ongoing negotiations.

The National Economic and Social Council completed its three yearly strategic overview of economic and social policy — NESC Strategy 2006: People, Productivity and Purpose — last year. The document, which paved the way for the current negotiations on a successor to Sustaining Progress, was published in December 2005. The council completed a separate study — The Developmental Welfare State — in May 2005 and a further report — Housing in Ireland: Performance and Policy — in December 2004. The council's work in 2006 will involve the completion of its work on child income supports, the preparation and publication of a report on migration policy and the completion of its earlier work on the Lisbon strategy, focussing particularly on policy learning through the open method of co-ordination. As part of the work of the National Economic and Social Development Office, the council's secretariat will be involved in the learning society foresight initiative, which follows up the work of the Information Society Commission and Sustaining Progress. Other topics in the council's work programme in 2006 are the preparation of a periodic social report, as requested by the Government, competition and regulation in networked sectors and taxation policy.

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