Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I have put on the record on a number of occasions as Minister my admiration for the work of our public servants. We now have approximately 340,000

public servants, over one third of whom work in our health service. The work they have put in over the last number of months has been immense, against huge adversity. We are doing the right thing as a Government in honouring the agreement that was entered into, even though it was entered into in much better times. We have had an enormous economic shock as a result of Covid-19 but honouring that agreement and paying the 2%, albeit at a significant cost, is justified in the circumstances.

I want to negotiate a new agreement and my officials are in initial, exploratory discussions at the moment and we will see where that goes in the next number of weeks. I hope a deal can be agreed but there is no certainty about anything. We have had periods in the past where we have not had an agreement in place. There is real value in a collective agreement and it is the Government's objective to secure one but it cannot be at any price.

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