Dara Calleary (Mayo, Fianna Fail)

I hope to update the House at a later stage on the amendment providing for an inability to pay clause.

Amendment No. 6 provides that, in the event that an existing ERO is not varied within six months of the passing of the Bill, that ERO would lapse. In recent months I have sought to encourage businesses in sensitive sectors, especially the hospitality and retail sectors which are being affected by the collapse in domestic demand and in which a relatively high proportion of employees are on minimum wage rates, to ensure the employer and trade union representatives on joint labour committees are responsive to the severe challenges faced by these sectors. Already progress is being made in a number of sectors, especially in the catering, hotels, agriculture and retail sectors, where agreement was reached on measures to address labour cost difficulties. These efforts demonstrate the responsiveness of both employers and the trade unions to these concerns and a willingness to find practical solutions to the severe problems we face.

The introduction via this amendment of a provision that effectively would require mandatory renegotiation of existing EROs would detract from the flexibility available to the parties involved and would not be in keeping with the co-operative approach adopted to addressing difficulties which have been evident in recent months. Accordingly, I cannot accept the amendment.