I thank Deputy Kenny for his question, which is an important and serious one. Discussions on a new partnership agreement to succeed the PPF have been under way for many weeks. They have been taking place against the backdrop of the recently published NESC strategy report. We have been following the same procedure, process and system we have followed since 1987.
I, the Tánaiste and the Minister for Finance have kept in touch in this regard, when necessary, for the past three or four weeks. Our assessment yesterday morning was that the talks were going relatively well. We had decided early yesterday morning to have an intensive and prolonged session yesterday. After ten hours of discussion in the early hours of this morning it became clear that progress was not being made and that a basis for agreement on a new pay deal had not been identified. Accordingly, the parties agreed to adjourn without specific arrangements to meet again. However, the chair – the Deputy referred to an official in my Department – arranged to contact both sides again this morning to assess whether there was a prospect of any change in positions which would make agreement possible.
I recognise that both sides have engaged in good faith and with considerable effort in the process. I thank them because in fairness to both sides, they have given three full weekends – not to mind all the mid-week days – to this process. Like the Government, they recognise the value of social partnership agreements and have sought to put in place a new agreement in the period ahead. We knew that this would be difficult, but it is right that the parties should reflect on the implications of failure to agree. Local bargaining can proceed on an orderly, responsible basis. However, I have good reason to believe it can also produce significant disruption and conflict and, in time, competitiveness pressures of a different kind.
The Government clearly wants agreement to be reached. I sent that message to both sides again this morning, but last night's conclusion was difficult. I will leave it at that. Frankly, I am not very hopeful, but I use this reply to Deputy Kenny to urge both sides to think about this. We were a very long way down the road yesterday morning. The talks went on for a long time yesterday and did not finish until 1 a.m. or 1.30 a.m. The people involved have been under a certain amount of stress and pressure, but I urge them to reflect on the process. We are available and ready to continue in every way we can.
Direct intervention is not necessary in these matters. The process is in place and those involved are all aware of it. They are aware that the Government is in the background ready to continue the process. The Tánaiste and I will remain ready in that position. Anything else would be unhelpful.
While the Government wants agreement, both sides need to want it as well. I urge both sides to listen to what we and our officials are saying. We are anxious to try to conclude an agreement and we would very much like to conclude these issues. We continue to press ourselves as far as we can to deal with these issues, but we must be conscious of what is right for the economy, competitiveness and the future of the country. It is not good for the future of the country for these talks to break down.