Brian Cowen (Laois-Offaly, Fianna Fail)

In welcoming contributions to a process of discussion, one does not, by that token, provide prior agreement. There are a number of principles contained in the framework that are central to trying to devise a way forward. One of these principles is that which relates to stabilising the public finances. An issue that has arisen is the ongoing question of how to deal with this matter. In the absence of stabilising the public finances and working towards a process of dealing with the structural deficit that has arisen, the prospect of economic recovery will be deferred. We must, therefore, consider these issues in the context of priorities of this nature.

There is an acknowledgement in the framework up to which the parties signed on 28 January last that the Government and the social partners agree on the necessity to deal with the deficit through an appropriate combination of expenditure and taxation adjustments. In the interim, the NESC report has deepened the shared analysis within society regarding the nature of the problems with which we are confronted and the approaches we must consider if we are to provide a degree of stabilisation for the economy in the short term and, subsequently, to plan for recovery.

The Government and the unions disagreed in respect of the pensions levy. The latter was a necessary part of an adjustment introduced by the Government earlier in the year. That adjustment, which was necessary, was designed to bring in €2 billion in an effort to ensure that international markets and people at home would recognise the Government's determination to make decisions that would address what was then a deteriorating position vis-À-vis the public finances.

The terms and conditions of public service workers and the question of job security are important considerations. The value of public service pensions as against depleted pensions in the private sector, which have been adversely affected by the financial crisis, must be seen in the context of fairness. From my point of view, the proposal in this regard was in keeping with the requirements of the situation and the principles we outlined in the framework document.

The Minister for Finance has continually outlined to the House Government policy on the banking sector. He has not attained unanimous or consistent support for those measures but his measures regarding the State guarantee and recapitalisation were the right decisions. He is now examining the position regarding risk management and how we deal with issues arising in our own system, which are not unique to us, but the question of impaired access etc. is an issue that must be examined carefully.

On the question of pay, the Irish Business and Employers Confederation has re-engaged with the Irish Congress of Trade Unions in regard to examining the current pay agreement agreed last year. Those discussions are bilateral between IBEC and the Irish Congress of Trade Unions and to what extent any progress will be made in that area is a matter for the parties directly concerned. For our part as a public sector employer, we have indicated our position on pay for this year and next year.

On the question of home repossession, we insist that the code of conduct drawn up by the Irish Banking Federation now be put on a statutory basis and include all providers of mortgage finance and not simply those who are members of that federation to ensure that the code of conduct, by being put on a statutory basis, will greatly assist in ensuring that precipitative action is not taken against those who fall into arrears in the immediate term.

See this speech in context