Brian Cowen (Laois-Offaly, Fianna Fail)

No pay offer has been made by the Government at this point. We are bringing the published official estimates on the performance of the economy in the first six months to the table so the social partners will be informed precisely as to what the Government regards as the short-term and medium-term prospects. Doing so will comprise an important input into the talks in an effort to determine whether we can conclude them successfully. It would be premature to do anything until that issue is addressed.

The non-pay issues are not disposed of. There has been much discussion on them and, as the Deputy knows, they formed a considerable part of the discussion on the Towards 2016 arrangements. There have been developments and the discussions continue. We will do what we can to determine whether we can solve the problems to everyone's satisfaction.

I would like to see the discussions conclude in the weeks ahead. This would constitute an important signal of determination on the part of all parties involved to provide a stable framework in a time of uncertainty and economic difficulty. This would be done with a view to maintaining jobs and inspiring public confidence in respect of how we are proceeding. Everyone acknowledges that the short-term economic outlook in Ireland has deteriorated. There are a number of difficult policy choices to be made and we must safeguard Ireland's future competitiveness in an increasingly volatile and globalising world. We must nurture an environment that continues to be conducive to investment, trade and employment growth through greater productivity and innovation.

There are a number of requirements to be considered if this challenge is to be met successfully. We must be realistic in our approach. We face a major challenge but must keep it in proportion. The strength of our economy across many sectors puts us in a different position from that in which we were when the challenges arose on the last occasion. Those engaged in the social partnership process have risen to the challenge. The lesson we learn from our economic history is that, unless necessary corrective action is taken promptly and appropriately, more painful adjustments with less scope for sensible prioritisation inevitably follow.

I will be making the point that we all need to recognise the short-term issues and that we can return to a position of economic growth as soon as the international upturn comes. We also need to make responsible and sensible decisions in the interest of job security, competitiveness and fairness to all in the circumstances in which we find ourselves.

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