Ivana Bacik (Independent) | Oireachtas source

To be fair, the previous Croke Park agreement was negotiated by the previous Government. I pay tribute to the unions that engaged in the process and stayed with it. I pay tribute to the Labour Relations Commission, which facilitated the process that led to the Haddington Road agreement. It is an agreement that, as others have said, protects the core pay of 87% of those working in the public sector earning less than €65,000. Pay reductions will be introduced for those earning more than €65,000, which is regrettable. It is the best way of doing it in a way that is fair and that has the least impact on those who are lower paid and those earning less than €65,000.

Other speakers referred to the increment freezes to be implemented and where collective agreements apply, the increment effect will be different. The individual's next increment will be paid and there will be a deferral of three months for those under €35,000, a deferral of six months for those earning between €35,000 and €65,000, a total deferral of 12 months for those earning between €65,000 and €100,000, and a three-year deferral for salary scales commencing above €100,000. There are clear graded measures on increments that take into account people's earnings. It is a way of trying to ensure the impact is least on those earning least in the public service.

There are significant advantages for unions that have signed up to the Haddington Road agreement or those that will sign up, having balloted their members. That is to be welcomed. It is not something any party in government is happy or enthusiastic about doing, particularly the Labour Party, but it is something we are committed to doing as part of a package of measures, as Senator Cummins said, to ensure we bring about economic recovery.

There is good news today when we see an increase in the number of people in employment. Today's CSO figures show a drop of 30,000 people on the live register. For the first time since the start of 2010 we see the number on the live register drop below 300,000. It is still far too many people but it is a sign of an improvement in the economic situation. It is an indication we will be able to get out of the current troika package by the end of the year and that we will regain economic sovereignty. That is a goal many people did not think was possible in 2011 when this Government took office.