Bertie Ahern (Dublin Central, Fianna Fail)

I propose to take Questions Nos. 1 to 7, inclusive, together.

Together with the Tánaiste and Minister for Finance and the Minister for Enterprise, Trade and Employment, I met the leaderships of IBEC and ICTU on Wednesday last. The purpose of the meeting was to discuss implementation of the Towards 2016 agreement, against the background of ongoing concerns about inflation.

For our part, I outlined the Government's commitment to engaging fully with the social partners to secure full implementation of the agreement in order that its objective of building a strong economy and society is achieved on a sustainable basis. In that context, we reviewed, among other issues, recent trends in inflation. We discussed, in particular, the special impact of higher interest rates and fuel prices on the headline inflation rate. While noting that the combination of pay increases under Towards 2016 and the changes in budget 2007 have ensured real increases for workers, the meeting acknowledged the extent to which inflationary pressures threatened the achievement of the objectives of the pay agreement. We on the Government side reaffirmed our commitment to framing public policy in the period ahead with a view, to the greatest extent possible, to minimising inflationary impacts and keeping costs for enterprise under control.

The Irish Congress of Trade Unions' representatives highlighted the particular problem of workers exposed to significantly higher housing expenditure as a result of higher mortgage interest rates. It was agreed that the potential for addressing that issue would be considered further, especially having regard to the announcement by the Tánaiste and Minister for Finance about further increases in tax relief for mortgage interest. It was also agreed that the Government and IBEC and ICTU would engage in intensified co-operation in responding to the inflationary pressures within the framework of the pay agreement and especially through the work of the anti-inflation group and the high level group on manufacturing. We agreed that a further similar meeting would be arranged to review the progress made in addressing these issues.

Regarding social partnership more generally, the inaugural plenary meeting with the social partners under Towards 2016 took place on 15 February in Dublin Castle. The meeting received and discussed the first progress report on implementation of the agreement. The report was laid before the Oireachtas and is available on my Department's website.

Since the inaugural plenary meeting a number of meetings have been held with the social partners in relation to implementation of Towards 2016. On 2 April my Department hosted a seminar for the social partners focusing on implementation of the life cycle framework under the agreement. The steering group held its second meeting on 30 April. The meeting focused on the people of working age life cycle stage and also received and discussed updates on Transport 21, the Government White Paper, Delivering a Sustainable Energy Future for Ireland, and the national climate change strategy 2007-12. We are currently meeting the social partners on a bilateral basis to discuss issues arising from the steering group meeting, in particular monitoring groups and mechanisms. The next meeting is scheduled for Thursday, 12 July. The steering group will receive the second progress report on implementation of the agreement. The report will also be laid before the Houses of the Oireachtas. In addition, the relevant monitoring committees and groups continuing from Sustaining Progress, together with the new groups established under Towards 2016, are continuing to progress their particular areas of work under the agreement.

Regarding the national implementation body, it continues to meet as required to oversee delivery of the industrial peace and stability provisions of Towards 2016. It has met on a number of occasions in recent months to assist in the resolution of industrial disputes. As the House will be aware, the body played a key role in resolving the nurses' dispute. Meetings of the body also provide opportunities for informal discussions on some of the broader issues relating to the social partnership process and the industrial relations climate generally.

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