Dermot Ahern
Question:10 Mr. D. Ahern asked the Minister for Finance his views on whether the country can afford Partnership 2000; and if he will make a statement on the matter.[11624/97]
Other Questions. - Partnership 2000.
The short answer is yes, the country can afford Partnership 2000. The commitments on pay, tax and social inclusion contained in the partnership agreement were incorporated in the 1997 budget and in the published projections for the 1998 and 1999 budgets under the multi-annual budgetary process. In fact, the 1997 budget made a significant step in implementing the partnership, with particularly marked progress on the tax commitments.
As the Deputy knows, the partnership extends over the three-year period 1997 to 1999. It is important that over that period we continue to manage our economy prudently in order to underpin the continuation of our good growth record of recent years.
In the partnership and in our budget projections there is a strong commitment to the Maastricht criteria and to the requirements of the Stability and Growth Pact. We must continue to ensure, as the partnership requires, that we observe these economic disciplines — they provide the necessary framework for the continued success of our policies and for ensuring thereby that the provisions in the partnership agreement are fully met, to the benefit of all sections of our community.
The recent ESRI Medium Term Review 1997-2003 highlighted the strong potential of the economy provided that we observe the required disciplines, a view with which I would be in wholehearted agreement.
I note the Minister's opinion that the country can afford Partnership 2000. However, he should cast his mind back to a short time before the agreement was signed when his party leader went over his head in regard to his view on the commitment to Partnership 2000 and forced that agreement through. Will the Minister comment on that?
We had a debate on this issue on Report Stage of the Finance Bill for which the Deputy was not present. Partnership 2000 is the fourth agreement of its kind. The commitment to reaching an agreement probably diminished with each agreement because the memories of the various participants are not as strong now as they were in the mid-1980s when the necessity for such agreements became relevant. Partnership 2000 was not carried by an overwhelming majority of the workforce. One of the largest trade unions identified an opposition candidate to the candidacy of Jimmy Somers for the presidency of SIPTU. She stated her opposition to Partnership 2000. The commitment of the social partners to Partnership 2000 must be reinforced and renewed on both sides, as I made clear yesterday in this House. We can afford Partnership 2000 provided we keep the disciplines.
We can afford increases in public sector pay in return for restructuring, better productivity and the application of the strategic management initiative over a period of time. It was on that basis I was happy to support Partnership 2000 and recommend it to this House.
Will the Minister not accept that while the support of the main participants in the various programmes has diluted, some of his party colleagues have converted to the idea of partnership? They have had a metamorphosis in the past decade.
The biggest act of conversion in this House was when Fianna Fáil came in here in 1927.
Not at all.
Conversion in politics is not new and not necessarily something to be criticised.
Written Answers follow Adjournment Debate.