Enda Kenny (Mayo, Fine Gael) | Oireachtas source

That is an important element of easing Ireland's exit from the programme in which the country finds itself because of the situation that applied a number of years ago. It is equally important to understand that the public finances must be rectified. This is the reason the Government mandated the Minister for Public Expenditure and Reform to talk to the trade unions about achieving further savings of €1 billion by 2015, including €300 million in the course of this year. Deputy Boyd Barrett is aware that the public service pay and pension bill represents 35% of expenditure, which is an important element of rectifying Ireland's public finances over the period ahead. It is equally important to follow through on the discussions taking place at the ECOFIN group and the Eurogroup with regard to the European Stability Mechanism, ESM, and the consequences of the decision arising from the European Council's decision to break the link between sovereign and bank debt.

These are three important elements of what it is the Government is about in this regard. I remind the Deputy that the management - on behalf of the Government - and the trade unions entered into these talks freely. That is an important consideration in this regard and I am glad to note the comments from the representatives of ICTU about the position that now applies. While these talks are challenging, complex and difficult, Deputy Boyd Barrett should note that decisions must be made because the position will not be rectified by itself.

As for the Deputy's comments about the consequences of a deal on the promissory note having an impact on our public finances, as I have stated, that deal will ease the exit from the programme in which Ireland is engaged, because the interest rates applying would be lower and there would be access to finance for banks to lend and provide credit for business and therefore stimulate investment for employment and the creation of jobs.

It is not a case of an elaborate charade but rather straight negotiation with a number of different groupings, including the trade unions, the European Central Bank and the ECOFIN group.

The Deputy is aware that the non-core pay bill, including overtime, allowances and premium pay, came to approximately €1.8 billion last year, with another €200 million in increments. The Minister for Public Expenditure and Reform and his team are negotiating directly with trade unions on the issue. The Government has set out its stall and we want to achieve €1 billion in extra savings by 2015. These choices are not easy but the problem will not rectify itself, which is why negotiations are taking place. This is not an elaborate charade but it is in the interests of the country and sorting out the problem of legacy issues.

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