on behalf ofDeputy O'Kennedy asked the Minister for Finance if he will give a full explanation of the circumstances surrounding the issue of a letter dated 27 April 1983 bearing his signature to the Standard Life Assurance Company, seeking a rescinding or suspension of pay increases recently agreed by that company.
Private Notice Questions. - Insurance Company Pay Increases.
The Government are closely monitoring pay developments because of their significance for employment and the economy.
When the settlement in Standard Life came to my notice, I was distrubed by the scale of the pay increases conceded by the company and the implications for other companies in the insurance industry and for other sectors of the economy. Hence my letter of 27 April 1983 to the company, a letter which did not issue in response to outside requests to me.
Does the Minister agree that what appears to be collusion between insurance companies, the FUE and the Department of Finance is seriously damaging industrial relations?
The Deputy's inference in putting that question can only be described as exaggeration. As I said, I wrote to the company in question because the details of the pay settlement which had become available indicated that it could have serious effects on the economy in general. As to the approach, as was pointed out last week in this House, it was in keeping with the approaches of previous Governments to the same industry. As to the question of collusion between insurance companies and the Department of Finance, the insurance companies must answer for themselves, but as far as I am concerned there is no question of collusion involved.
Does the Minister not agree that the draft wording of the letter was prepared by the officials of his Department, some people from the FUE and the management of some insurance companies?
The wording of the letter was prepared in my Department on my instructions.
That is not what the telephone conversation revealed.
In view of the Minister's declared intention to impose sanctions on companies which enter into agreements with workers, does he intend to impose sanctions on companies which fail to reinvest their profits or who fail to carry out any of the other functions which companies must do to remain viable?
That is a separate question.
The Minister might answer.
Deputy O'Hanlon has been given permission to raise a Private Notice Question.
It is clear that the only people against whom sanctions will be imposed are the working class.