Eamon Gilmore (Dún Laoghaire, Labour)

I have two questions for the Taoiseach arising from the replies he has given us. We have been talking about the social partnership process for more than half an hour, but I am not clear as to whether or when agreement will be reached on pay. Does the Taoiseach envisage, if the talks resume, that agreement on pay will be reached and, if so, what form will it take?

As regards the early retirement scheme announced in the budget, and to which the Taoiseach referred, as I understand it quite a number of employees in various areas of the public service, including gardaí, teachers, nurses and so on are considering that option and are doing so on the basis that they understand - there was a strong hint in this regard from the Minister for Finance - that the pension lump sum will in future be taxed and that if they retire now their lump sums will not be taxed. People who wait to retire under normal arrangements may face having their lump sum taxed. What is the Government's position in this regard? Is it the position that everybody who applies for the early retirement option will be permitted to go? What will this mean for services which are reliant upon experienced people, in particular, the Garda Síochána? If a person is refused permission to retire under the scheme, will his or her lump sum be exempt from tax in the future, if taxation of the lump sum is introduced?

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