Bertie Ahern (Dublin Central, Fianna Fail)

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

Since the inaugural plenary meeting on 15 February 2007, several meetings have taken place with the social partners in relation to the implementation of Towards 2016. I attended and addressed the ICTU biennial conference on 4 July at which I emphasised the basis for confidence in Ireland's economic outlook while, at the same time, warning against complacency.

Regarding the basis for confidence, I referred in particular to the ESRI's report on the social impact of our economic development. It concluded, among other findings, that living standards have risen for almost everyone, the fall in unemployment, in particular long-term unemployment, has made a decisive impact on social exclusion, people are now more likely to work in a better job than their parents and levels of deprivation have significantly declined for all social groups.

These achievements, and others like them, are not accidental, they are the outcome of good government and sound policy choices taken by a variety of stakeholders in society, mediated in many cases through social partnership.

Regarding the need to guard against complacency, I drew attention in my speech to the globalised setting within which the economy operates. Interest rates, energy prices and competition from emerging economies provide warning signals that success cannot be taken for granted. Minimising inflationary impulses, in so far as we can, is especially important. There is acceptance on all sides of the social partnership framework that we cannot and must not go back to the wage-price inflationary spiral of the early 1980s.

Regarding the ongoing engagement with social partners on the implementation of Towards 2016, the most recent meeting of the steering group was held on 8 October. The agenda included a presentation on the housing commitments under Towards 2016, a presentation on progress for people with disabilities and proposals for the North-South consultative forum.

The meeting also considered the progress report on the national reform programme under the Lisbon Agenda which is being progressed within the overall Towards 2016 framework. The report was submitted to the European Commission and laid before the House in October.

The latest plenary meeting took place on 8 November 2007 at Farmleigh House. The Government was represented by me, the Tánaiste and Minister for Finance, the Minister for Health and Children and the Minister for the Environment, Heritage and Local Government. Agenda items included a pre-budget presentation from the Department of Finance. The third progress report under Towards 2016 was also circulated at the meeting and has been made available on my Department's website. As is the normal practice, all papers and copies of the progress report have been laid before the Oireachtas.

The steering group will continue to have overall responsibility for managing the implementation of the agreement as it applies to the wider non-pay issues. Quarterly plenary meetings of the social partner pillars will continue, as has been the practice over recent years. The programme for Government commits that "arrangements for representation of environmental issues in Social Partnership will be considered in the course of the review of Towards 2016 which will take place in 2008." Any change to the structure of social partnership must be carefully considered and the Government has previously identified clear and specific criteria against which applications to join the social partnership process are considered. These include that organisations requesting social partner status be national and representative in nature; that they have the capacity to meet the demands and obligations that arise as part of this participation; and that they will add to the capacity of the social partnership process to address issues effectively. In addition, any organisations would be required to formally endorse the Towards 2016 agreement.

In line with this commitment in the programme for Government, the issue will be considered further in the review of Towards 2016 in 2008 and related commitments to enhance the role of Comhar and establish a climate change commission. In respect of the application by the Irish Small and Medium Enterprises Association to be included in social partnership, the Government fully recognises the central importance of the small business sector to Ireland's economy. It is deeply committed to sustaining its support for enterprise through a competitive regulatory environment, prudent fiscal policy, as well as the comprehensive range of State supports provided by organisations in the field, such as the City and County Enterprise Boards, Enterprise Ireland, IDA Ireland and FÁS. The Small Firms Association represents small businesses in social partnership. Participation in the pay negotiations will continue to be confined to organisations with an established role in pay and industrial relations matters and will not be extended beyond the current participation.

Regarding correspondence received from the General Secretary of the Irish Congress of Trade Unions on the question of inflation and mortgage interest relief, I wrote to ICTU on 14 September 2007 reaffirming the Government's resolve to tackle the root causes of inflation, in so far as it is within our capacity to do so. The General Secretary raised the question of increasing the ceiling on mortgage interest relief for first-time buyers and those who bought a house in the past seven years. In response I confirmed that the commitments in the programme for Government in this respect are set within the context of the budget. The Tánaiste and Minister for Finance announced on 3 July 2007 his intention that budget 2008 will provide for a further increase in mortgage interest relief for first-time buyers of €10,000 for a single person and €20,000 for couples or widowed persons.

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