Joe Costello (Dublin Central, Labour)
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Question 90: To ask the Minister for Enterprise, Trade and Employment if the Government has plans to review the wage increases agreed for private sector workers under the Towards 2016 agreement in view of the continuing high rate of inflation, which is significantly higher than that forecast when the agreement was concluded; and if he will make a statement on the matter. [31133/07]

Billy Kelleher (Cork North Central, Fianna Fail)
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The provisions regarding private sector pay in the social partnership agreement, Towards 2016, were agreed by negotiation between the parties to the agreement. The agreed pay terms will begin to expire at the end of March 2008 and it is envisaged that the Social Partners will commence the next round of pay negotiations early in 2008.

It is the Government's firm view that a wage inflationary spiral is in nobody's interest. Indeed, that would be to everyone's detriment — with the low-paid and the vulnerable suffering most. I think that position is shared by all the parties to the pay terms of Towards 2016.

Wage moderation can be a powerful counter-inflationary tool, while excessive wage growth can be a strong driver of rising prices. Above all, what we must not do is embed inflation more deeply and price ourselves out of jobs and growth through an unworkable formula of wage demands chasing inflation.