Vol. 525 No. 1
6 Mr. Callely asked the Minister for Finance if he will advise of the key issues that have helped to develop Ireland's economic development over the past few years; the issues that must be addressed to sustain our economic performance; and if he will make a statement on the matter. [23431/00]
There are a number of factors which have contributed to the impressive performance of the Irish economy over the 1990s. These include a young and educated workforce, reflecting investment in education over three decades; membership of the EU and full participation in EMU, which gives us access to a market of over 300 million people; social partnership, which has sustained competitiveness while delivering real increases in pay; improved incentives facilitated by reductions in both personal and corporate taxation; a positive business environment that has encouraged investment generally and foreign direct investment, particularly in high technology industries such as electronics and pharmaceuticals; prudent budgetary policies that have dramatically lowered the national debt and the burden of debt service on present and future taxpayers. These factors, together with appropriate Government policies, raised employment by over 500,000, cut unemployment by 140,000 and brought Irish living standards up to the EU average.
To sustain this performance we must ensure that Ireland continues to be an economy which can successfully compete in the global marketplace. To attain this goal we must continue to successfully meet the challenge of inflation and maintain Irish competitiveness through implementation of the Programme for Prosperity and Fairness; continue with a prudent approach to the public finances in line with the stability and growth pact; encourage structural change through increased competition; and ensure implementation of the National Development Plan in order to provide the infrastructure to sustain progress.
This Government is committed to ensuring that the economic success we have all worked so hard to achieve will continue and it will take appropriate measures as the situation demands.
I did not want to allow such a finely crafted question by my constituency colleague, Deputy Callely, to go without comment and, indeed, a wonderfully worded response given by the Minister. Does the Minister agree that the PPF has become a floor in terms of private sector earnings?
There is conflicting evidence in that area. Anecdotally people say some firms are using it as the floor and are giving wage increases outside of it. I hear through official channels and from IBEC that is not the case. It is a voluntary agreement and it is up to employers to decide how to conduct their own internal industrial relations and pay terms. The evidence so far is contradictory. One hears of settlements that are well outside of it but one is told the majority of firms in the private sector are abiding by its terms. It will be some time before we have the correct story.
Deputy Callely's question reminds me of the "that is enough talk about me, now what do you think of me" type question. Is the Minister in the midst of negotiating a pay increase outside the terms of the PPF at present?
No. Discussions with ICTU and the other social partners on issues ranging from pay to taxes and so on have been ongoing and will continue. We read the comments of various trade union leaders and other participants in the social partnership but, as we speak, everyone is putting their cards on the table.
Is the Minister ruling out the possibility?
I have said on a number of occasions, as has the Taoiseach, that we cannot get into a position where we try to compensate for price inflation and factors outside our control with higher wages. That would be a recipe for disaster. There is a process under the terms of the social partnership where people can put forward their views. All the participants are doing so.
So 3% would be reasonable?
The Deputy is trying to get me to negotiate across the floor of the House what is pertinent to the social partnership and that I cannot do.
