Vol. 519 No. 5
163 Mr. Durkan asked the Minister for Finance whether adequate provision was made in the Programme for Prosperity and Fairness to meet all eventualities, including inflation; and if he will make a statement on the matter. [14509/00]
The pay terms of the new agreement strike a balance between gains in real disposable income and maintaining Ireland's competitiveness. Employees will receive pay increases totalling 15% over the 33 months of the agreement. In conjunction with ongoing reform of income taxation, this will provide substantial gains in take home pay without undermining Ireland's ability to compete in global markets.
I am aware of the recent trends in inflation. I expect that inflation will fall over the second half of this year. I am confident that, over the remaining period of the PPF, inflation will fall well below current levels.
