Brian Cowen (Laois-Offaly, Fianna Fail)

We have social partnership structures and processes in place. It is true that we have a pay freeze in the public sector until October. We indicated that we would not be able to pay the instalments due in October 2009 and June 2010, due to current financial arrangements. Representatives of ICTU and IBEC have had discussions on the private sector pay agreement and others issues related to the implementation of the agreement. There are difficulties, strains and problems, as a result of the deterioration of the economy since the agreement was made in September. Assumptions have since considerably changed on things like inflation trends, which would have informed the basis of the agreement in September.

We have a voluntary system of industrial relations in this country. We have had centralised agreements in the past, and they have brought benefits. It is true that there are strains and difficulties, but it is only through continuing dialogue that these issues can be resolved.

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