Jim Walsh (Fianna Fail)

I wish to share time with Senator Daly. There is no doubt that over the past 20 years social partnership has played a significant part in economic growth. It is wrong to argue it did not. Equally it is wrong to argue that it be given full credit for where we are because that is not the case. Undoubtedly our EU membership and particularly the overseas industrial development we attracted was a significant factor as was free education and the work ethic of the people.

One of the best aspects of our EU membership was that we began to model ourselves on Germany, which was successful, rather than our slavish approach to following everything that was British, which was a mistake. We did that at the right time. It contributed to a better industrial relations environment particularly in the private sector. The same did not apply in the public sector. That it did not make any contribution to productivity in the work place, as some Members have said, is a fallacy. Many industries are in a position to pay more and do pay more. Market forces dictate the amount employers pay to retain good personnel within their companies. There are traditional industries where employees have been helped.

In regard to the public service, my fear is that it has become a baseline upon which unions have successfully built through benchmarking and other things. If there is to be further benchmarking the pay scale in the public service, which is outstripping the private sector, is a huge risk factor. Any future benchmarking should deal with similar jobs and positions and responsibilities within the rest of the European Union. There should be complete flexibility in the workplace. There are too many restrictive practices in the public sector in particular. These must be eradicated.