Dáil debates

Wednesday, 15 December 2010

11:00 am

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)

As I stated, there have been a number of bilateral meetings both this year and in previous years. However, there has not been a plenary meeting because, as the Deputy is aware, the Government has been dealing with this crisis. In addition, we also have had the Croke Park agreement and there has been a huge amount of consultation and work that has provided the background to dealing with a lot of problems that were arising in the labour market and industrial relations areas. This work has been highly substantive and specific. Moreover, it is clear that in the new economic, financial and fiscal position in which we find ourselves, all these agreements, whether they be social partnership agreements or any other, are based on maintaining financial and fiscal stability and on putting in context that all our commitments in such areas are subject to that overriding imperative because, otherwise, the process of implementation, whether phased or complete, is put at risk. Consequently, I do not accept that these do not continue to inform our basic approach. In all its efforts, the Government has sought to make adjustments that are progressive whereby people at the highest end of the spectrum in terms of income and resources pay the greatest proportion of the adjustment. This has been the case and economic data are available in the budgetary papers to confirm this and subsequent analysis of the budget and the cumulative impact of the budgets the Government has been obliged to apply since 2008 confirms this progressivity.

As for the issue about which the Deputy asked regarding a recent interview, I understand the Minister was referring to social partnership as an influence on public spending increases. He also spoke about the commitments as reflected in successive programmes for Government in that respect. As for the wider public spending influence of social partnership, all agreements are negotiated against a background of the programmes that are in place and of the overriding requirement for fiscal and financial stability. Commitments expressed as being dependent upon available resources and against a backdrop of the overriding concern to secure economic and fiscal stability form part of those programmes or of any other commitments people made responsibly at the time. It is important to consider the impact on public expenditure through increased public service salary levels and increases then associated with the wider policy objectives as set down in partnership agreements. The process of building peace and stability in the labour market and underpinning the process of economic change has yielded two of the benefits that social partnership provides for us all. There is no doubt but that in the circumstances in which we now find ourselves, social partnership must evolve to meet our current circumstances. However, as a matter of information sharing, opinion sharing and getting the views of people and stakeholders in our society, it remains an important point of contact for all social partners with the Government.

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