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

I have acknowledged publicly the need to go beyond terms of the current agreement. This is why those negotiations are under way today, and it is hoped they will come to a successful conclusion shortly. The backdrop is challenging in a number of respects. I have acknowledged the impact of inflation on the living standards of workers, both public-sector and private sector workers. There is an increasing level of uncertainty about the global economy. We are facing significant fiscal pressures in the State also. We must make sure whatever arrangements we enter into are affordable. It is certainly my objective and my desire to have a public service pay agreement. It is in the interests of all parties because it does afford industrial peace, which is an important ingredient in having a successful economy.

We must watch the competitiveness agenda. We have to make sure we do not make any decisions in this very difficult time that would disadvantage Ireland from a competitiveness point of view. Ultimately, the success of our economic model is that Ireland has been very competitive in attracting inward investment and as a base for Irish companies to export throughout the world.

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