Brendan Howlin (Wexford, Labour) | Oireachtas source

As I have already indicated to the House, I want to enter into discussions with the public sector unions to discuss an approach to underpin the gradual wind-down of the FEMPI Acts.   The public service unions have indicated that they intend to make a pay claim if the economic circumstances permit, to which inevitably the Government would have to respond.  Any prudent Government will have to be looking at the potential successor to the arrangements we have in the form of the Haddington Road agreement.  In this regard, I have indicated that my preference is to have the first quarter Exchequer returns available to me before inviting the unions into talks so that I will have the most up-to-date information on the public finances. The economy is recovering, in no small part due to the contribution public servants themselves have made to keeping the costs of the public service pay bill at a sustainable level. I expect that their representatives will be strongly pressing for redress for their members. That is their job.

The emergency conditions that faced the Government on taking office in March 2011 have been brought under control now. The improvements in the public finances and our significant progress towards meeting our fiscal targets have enabled us to exit the programme of assistance and regain sovereign control over our financial affairs, albeit at some considerable cost. However, with control comes responsibility for the continued prudent and effective management of the economy to ensure that our State will not return to the days when we were required to avail of international assistance and cede control of our financial affairs to others. The Government is clear that any discussions on pay will take place in the context of the State's fiscal position and the pace of financial recovery for this year and next, as well as ensuring a sustainable fiscal position over the medium horizon.

There are strong indications that reviews of pay levels will take place across a broad range of private sector employers across the economy this year, and that is welcome - it is a sign of normalisation in the economy. None the less, it is important that expectations in regard to any discussions serve to retain the improvements in productivity and competitiveness that we have helped to deliver in recent times and that have been an essential part of the improvements we have made in the economy.

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