Brian Cowen (Laois-Offaly, Fianna Fail)

I propose to take Questions Nos. 4 to 9, inclusive, together.

In January, the Government and social partners agreed on a framework for a pact for stabilisation, social solidarity and economic renewal. That framework acknowledged that urgent and radical action was required to restore stability to the public finances; maximise short-term economic activity and employment; and improve competitiveness. Intensive discussions followed between the Government and social partners to attempt to agree, within that framework, the key elements of the fiscal adjustment required.

In the context of the discussions, the Government tabled proposals to achieve a saving of €1.4 billion through the introduction of a pension levy in the public service. The unions were not in a position to agree to that proposal. The Government's consequent decisions on achieving the €2 billion adjustment were taken within these parameters and in accordance with principles agreed with the social partners.

The challenge now faced by the country is immense and this is already evident from the very significant reduction in economic activity and the associated sharp rise in unemployment. It is in turn reflected in the very serious fiscal position. The Government is preparing to announce further measures on 7 April to address the deteriorating situation.

In that context, and having regard to the potential for further severe impacts on jobs and living standards, I am convinced that there is a case for the development of what the National Economic and Social Council, NESC, called an integrated national response to the complex interplay of domestic and global forces which must be confronted, and for this response to be effective by commanding wider societal ownership.

For that reason, last week I invited the social partners to engage as a matter of urgency with the Government in seeking to develop and conclude a national agreement building on the shared perspectives which emerged in our discussion in January and in the recent NESC report. I welcome the decisions taken by the social partners last week to accept that invitation and, in particular, the ICTU decision to call off the planned industrial action.

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