Paul Bradford (Fine Gael)

If we were debating a Government announcement that €1.2 billion per annum extra at current annual value would be spent on the public services over the next ten to 12 years, we would all welcome that such money would be spent on housing projects, hospital beds, school buildings, etc. However, the amount of €1.2 billion is not being spent on those valuable social projects but rather on wage increases.

If we are to have the best public service, and we need the best in Europe if we are to continue to grow as a country, I fully appreciate that we must pay top class salaries to employ top class people. The question we are asking and that must be asked of Government and of the social partners is what value for money are we securing for this large increase in public expenditure.

The Minister let the cat out of the bag. He spoke about industrial relations and a pay agreement. That is what this issue is about. It is a pay agreement. It is the buying of industrial peace. It is couched as benchmarking, but as Members of the Oirechtas, and this also applies to members of the public, we find it difficult to ascertain what the taxpayer and the public will get as a result of the payment of these increases.

Fine Gael believes that we must take stock of the value of money increases. We must demand a clear explanation of what exactly is on offer and when this offer will be delivered from the point of view of improving public services. From the point of view of local authority services, as a former member of a local authority, I am aware that every local authority across the country will find it impossible to make the books balance when their estimates come up for discussion in the next few months. Local authorities cannot afford these increases unless they are bailed out by the Minister for the Environment, Heritage and Local Government, but he has already said "no" to such a proposal.