I move: "That the Bill be now read a Second Time."
The purpose of this Bill is to establish the National and Economic Social Development Office and, through it, give a statutory basis to its constituent bodies, the National Economic and Social Council, NESC, the National Economic and Social Forum, NESF, and the National Centre for Partnership and Performance, NCPP. The Programme for Prosperity and Fairness provided that the NESC, the NESF and the NCPP would be brought together within the National Economic and Social Development Office, and the Bill puts this commitment on a statutory basis.
Before dealing with the Bill, it is worth considering the social and economic climate in which it has been introduced. On the domestic front, economic growth has slowed this year, primarily as a consequence of the international downturn in continental Europe as well as the United States. Nevertheless, growth here is the strongest in the European Union, thereby continuing a pattern that has been evident for a sustained period. In relative terms, therefore, Ireland's overall economic performance remains impressive. It demonstrates a well developed resilience to offset the worst potential effects of sudden and persistent external shocks or downturns.
That said, one should not ignore the pressure points that currently exist. For example, the Exchequer situation has changed, which has implications both in terms of the choices at our disposal and the options that can be pursued. That was evident in the economic circumstances in which the recent discussions with the social partners took place. What we must do, first and foremost, is keep expectations and demands in line with fiscal conditions and outlooks. If we do that, competitiveness will be protected and employment secured. If we do not, the consequences are self-evident from our economic past, most notably the early and middle 1980s.
However, it must also be borne in mind the Government debt-GDP ratio is such that it has fallen from 65% at the end of 1997 to an estimated 34% at the end of last year. This means that, with the exception of Luxembourg, we have the lowest debt-GDP ratio in the European Union. On the inflation front there are indications that pressures are easing, but it is clear that continued diligence is required.
I addressed some of these issues in my recent speech to the IMI conference. I stressed that the issue of competitiveness is absolutely basic and that unless we are competitive, the economy will not thrive. The present situation holds some vulnerabilities. There is no doubt that we have lost some competitive ground through increased operating costs and slower productivity growth. It is vital, therefore, to underpin development efforts with a more competitive cost base.
The framework for injecting the necessary diligence, stability and certainty into economic and social policies has been social partnership. Born out of the serious fiscal crisis in the middle 1980s, it crystallised in 1987 in the form of the Programme for National Recovery, an agreed consensus between the Government, trade unions, business organisations and farming bodies on the tasks to be faced and the actions to be pursued. That first agreement has been succeeded by further agreements that have encompassed a wider economic and social agenda, focusing on such issues as unemployment, inequality and social exclusion as well as incomes policy.
The shared overall goal of the new agreement, Sustaining Progress, covering the period 2002 to 2005, is to continue progress towards the realisations of the NESC vision for Irish society in terms of economic inclusion based on full employment, consistent economic development that is socially and environmentally sustainable, social inclusion and a commitment to social justice and continuing adoption to change. This goal is in the context of the more medium-term goals set out in the recent NESC strategy report. It also reflects the reality of the fiscal environment, whereby current resource constraints have implications for priorities and timeframes across all policy areas and programmes. That is why the recently ratified social partnership agreement is so important. It promises stability in what will undoubtedly be an unpredictable economic environment and it will help to ensure that we maintain the industrial harmony that has characterised the economy over the past years.
I acknowledged the considerable effort and commitment by all those involved in the successful negotiations on Sustaining Progress. The series of agreements since 1987 have played a very significant role in the radical transformation of the country's economic and social fortunes. The social partnership process has engineered an unprecedented consistency across a range of policy areas, whether of a fiscal, monetary, social or equality nature. We cannot afford, however, to rest on past achievements although from time to time it can appear that familiarity with the social dialogue process leads us to undervalue it.
We know that we must keep striving for competitiveness in a fast changing world. We also know that while the products of economic growth are evident, for many people poverty remains a reality and deprivation a way of life. This reality presents an even greater challenge in an environment where growth has slowed down and the available resources must be managed in a more targeted and effective manner.
As a society we jointly face the challenge of securing our future well-being. By working together, the Government and the social partners have overcome major challenges, such as putting the public finances in order and successfully tackling unemployment. The issues confronting us today, whether in terms of competitiveness, social cohesion, environmental sustainability, agricultural change or financial market volatility, are no less complex and challenging and require a similar collective response.
As I have repeated on a number of occasions, there is a clear choice. We can choose between planning and working together or pursuing sectional interests, as we did at times before the social partnership agreements. Social partnership has demonstrated a strong capacity for adopting and evolving a response to current needs and concerns. It is the hope of the Government that with the successful outcome of Sustaining Progress, partnership will continue into the future.
The new office, the National Economic and Social Development Office, to be established by this legislation, is a framework to provide a statutory basis for the work of three separate bodies within the fabric of social partnership. The National Economic and Social Council was established in 1973 as an advisory body to the Government on the development of a national economy and the achievement of social justice. In this, its 30th anniversary year, the council continues to provide a forum in which views can be exchanged between those who have a common interest in the development of the economy and the pursuit of social justice.
The membership of the NESC is representative of the major economic and social interests in our society and that broad spectrum of talent has enabled the council to undertake innovative and pioneering work in a number of areas. In particular, its strategy reports have provided the framework for the negotiations of the national agreements between the Government and the social partners since 1987. The most recent strategy document provided the backdrop to the discussions on the recent talk on social partnership.
The National Economic and Social Forum was originally set up by the Government in 1993 for the purposes of widening the social partnership process and of achieving consensus on as wide a base as possible on major economic and social policy issues. Since 1998, the forum's work has been focused on evaluating the implementation of policies dealing with equality and social inclusion. In that period it has produced a number of reports which have drawn on the experience of a wide range of interests, especially the consumers of public services.
The third strand feeding into this National Economic and Social Development Office is the National Centre for Partnership and Performance, the NCCP. Launched in 2001 its purpose is to support and drive change in the work place. It will enable organisations in the private and public sectors, through partnership, to respond to change, to build capability and to improve performance. The NCCP has a mission to support and facilitate organisational change based on partnership to bring about improved performance and mutual gains. This contributes to national competitiveness, better public services, higher living standards, a better quality of work life and the development of the work place in the future.
The centre is practical in its approach. In addition to disseminating evidence and experience-based information on how partnership and change can contribute to productivity and competitiveness, it will also directly assist and support significant partnership initiatives. I commend the work of these three bodies and the major contribution made over the years by their members, including Members of this House and their excellent staff.
These are the distinct bodies that have been brought together to operate within the National Economic and Social Development Office. The roles of each body, however, are distinct yet complementary. This legislation will give statutory recognition to the important role of these partnership institutions, confirm their independence and provide a proper basis for the recruitment and employment of staff. The office will act as a resource base for the Government's advisory bodies on economic and social policy and partnership. Their co-operation with each other within the office will create the positive synergies that the Government believes are necessary in this area.
I will now deal with the Bill and its provisions. The Bill deals with the practical arrangements for the establishment of the National Economic and Social Development Office and for the benefit of the House I will touch on some of its main features. Section 6 sets out the establishment of the office and refers to its constituent parts as including the National Economic and Social Council, the National Economic and Social Forum and the National Centre for Partnership and Performance. It also states that the office in each body established under this section and section 7 shall have all such powers as are necessary for, or incidental to, the performance and functions under this Act.
In the interest of providing flexibility to address issues that may arise in the future, section 7 gives the Taoiseach the power, following consultation with the Minister for Finance and any other Minister, to establish by order any additional body within the office as considered appropriate to prepare advice and reports on any aspect of any matter regarding the functions of the office.
Section 8 states that the function of the office shall be to advise the Taoiseach on all strategic matters relevant to economic and social development in the State. It will do so by supporting the individual mandates of NESC, NESF and NCPP as set out in their own terms of reference, in particular by making the relevant staff available.
The functions of the council, the forum and the centre are set out in sections 9 to 11, respectively. The functions of the council shall be to analyse and report to the Taoiseach on strategic issues relating to the efficient development of the economy, the achievement of social justice and the development of a strategic framework for the conduct of relations and negotiations of agreement between the Government and the social partners. The functions of the forum are to monitor and analyse the implementation of specific measures and programmes identified in the context of social partnership, especially those concerned with the achievement of equality and social inclusion, a new function which will be reflected by a Government amendment in due course and to facilitate public consultation on policy matters referred to it by the Government from time to time. The functions of the National Centre for Partnership and Performance shall be to support and facilitate organisational change and innovation based on partnership in order to bring about improved performance and mutual gains and to contribute to national competitiveness, better public services, higher living standards, a better quality of life and the future development of the work place.
Section 13 sets out the composition of the office as being the chairpersons and deputy chairpersons of the council, the forum and the centre. Sections 14 to 16 explain the nominating procedures for the ordinary membership of each of the bodies. In all cases the members shall be appointed by the Taoiseach. Section 17 sets out the term of office of the chairperson and the ordinary member of any new body within the office and the conditions under which both will hold office. The section also calls for an equitable balance to be achieved between men and women in the composition of a body.
Section 19 outlines the conditions which apply to a member of the council, the forum, the centre, or a member of the staff of the bodies when they are nominated or elected to membership of either House of the Oireachtas or the European Parliament and thereupon cease to be a member or a member of staff of the particular body.
Sections 20 to 22 cover the establishment of committees and how they will function, the disclosure by members of the office, body and staff, of interests, and the prohibition on the disclosure of confidential information. Section 23 deals with the role of the chief officer of the office and indicates the duties assigned to him or her, the method of his or her appointment and removal by the Taoiseach and other conditions which apply to the post. Section 25 is about the staff of the office and how such staff are to be recruited. This will require consultation between the office and the director of the body concerned and must have the consent of the Taoiseach and the Minister for Finance. It also deals with the removal of any officer or employee who fails to perform his or her functions satisfactorily.
Sections 28, 30 and 31 cover the financial arrangements for the office and in particular the advancing to the office of moneys provided by the Oireachtas, and keeping of accounts and the conditions which apply to their submission to the Comptroller and Auditor General. The provision for the giving of evidence by the chief officer to the Dáil committee established to examine and report to Dáil Éireann on the appropriate accounts and reports of the Comptroller and Auditor General is also covered. Section 33 requires the office to report to the Taoiseach at the end of the financial year and the Taoiseach shall cause copies of the report to be laid before each House of the Oireachtas. The office shall be required under section 32 to prepare a strategic plan for approval by the Taoiseach not later than six months after the establishment day of the office and every three years from the submission of the first statement. Once approved, a copy of the plan will be laid before each House of the Oireachtas. In the interest of providing flexibility to cope with future developments while providing the benefit of a statutory body, section 34 allows the Taoiseach the right to dissolve the council, the forum, the centre and any other body established under section 7, following consultation with the office and any Minister who is represented on the body. The office will be included in the First Schedule to the Freedom of Information Act 1997 and thereby will be covered by its provisions. Section 35 sets this out.
The remaining sections of the Bill are to do with the dissolution of the existing non-statutory council, forum and centre on the establishment day of the new office, the transfer of rights and liabilities of the dissolved bodies, the drawing up of the accounts of the dissolved bodies, and of particular importance to the staff of the bodies, the conditions which apply to the transfer of the new statutory bodies. The Bill will put in place the structures referred to in the Programme for Prosperity and Fairness by combining the NCCP alongside the NESC and the NESF to ensure that their complementary roles are acknowledged and developed to support the economic and social fabric of our society. I am confident that the new office will achieve this and I wish it well in its important work. I commend this Bill to the House.