Brian Lenihan Jnr (Dublin West, Fianna Fail)

The agreement was the result of negotiations with the social partners, which did have regard to the difficult economic environment. It is accepted by all the parties involved that the talks were among the most challenging and complex yet faced. No specific additional provision has been made for the costs in 2009 of the increase provided for in the new draft pay agreement and those costs must be made from within the approved allocations.

Early last July when I announced a round of savings throughout Departments, payroll and administrative expenses, as referred to by Deputy Bruton, were addressed. The savings then targeted were achieved. Likewise, in this budget right across the range of Departments, further payroll savings are required and will be achieved. Public service reform is easy to discuss in the abstract but it requires hard, difficult decisions to be made on the ground.

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