Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

All members of society, including employees, have contributed to the adjustments it has been necessary to make in recent years. I suppose the biggest contribution has been made by those who lost their jobs. There is a trade-off between the general level of pay in an economy and the number of new jobs one can provide. The priority of the Government is focused on creating new jobs. However, that is not to state there are no profitable sectors within the economy, as, of course, there are. The Government encourages the profitable sectors to give wage increases to their employees, which also forms part of Government policy. I understand that in 2013 approximately 40% of firms in the private sector gave wage increases. While I cannot provide a statistic for the Deputy, I understand this trend is continuing and strengthening into 2014. However, the Government is not disposed to return to centralised wage bargaining. It considers the best way to do it is for those showing increases in productivity or profitability and which have the wherewithal to provide modest wage increases. However, competitiveness within the economy must be maintained. It is because Ireland has become quite competitive that the economy is now producing up to 5,000 extra jobs per month.

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