Kathleen O'Meara (Labour)

When I was in County Meath over the weekend I noted that the price of unleaded petrol was more than €1 a litre, the highest price I have seen. Senator Leyden probably did not notice this on his trip from Roscommon to Dublin but he might like to note it as one of the most extraordinary price increases we have seen recently.

I recall speaking in 1992 to a college friend who had emigrated to London, as many did in the early to mid-1980s, because of the lack of employment opportunities. He got married there and is now working successfully. When he came home in the early 1990s, he said things had improved and that he wanted to know the key to it. We discussed the national programmes and the manner in which they had been used successfully to turn around the situation we faced in the mid-1980s of high unemployment, serious economic difficulty and emigration, which had caused a huge drain on the economy. There is no doubt the formula used in the national programmes, including Sustaining Progress, of bringing all the partners together and hammering out a national agreement whereby there would be industrial peace and wage levels would be set at a certain level which would help employers was successful. The Government, in turn, kept its side of the arrangement. It worked successfully in conjunction with major investment from the European Union for education, roads and other infrastructure.

The national programmes since the late 1980s have been a major contributor to our economic prosperity and enhanced economic performance. However, things have changed, some for the better. How well will this formula work in a changed environment and how well will the programme work over its lifetime? It was interesting to note the level of difficulty the Government faced in the late stages of the negotiations on the programme, particularly its efforts to keep the voluntary and community pillar and farmers on board, as the Minister of State knows. What is in it for some groups and why should they stay in it? Some elements of our society are probably wondering if it is a good idea.

There is a major change in our economic environment. In the past year, in particular, a number of people have faced problems. Inflation was mentioned on more than one occasion in the House. It is causing problems across the board. Job losses have started to rise in recent months. It is fine to talk about benchmarking and pay increases but that will not help someone who does not have a job. The increases in indirect taxation since the last general election mean that the value of many people's pay packets is considerably undermined by increased ESB bills, third level registration fees and hospital charges. The situation has changed a lot in the past year. One must ask if the agreement is capable of maintaining the level of economic activity we need.