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Dáil Éireann díospóireacht -
Tuesday, 12 Nov 1991

Vol. 412 No. 5

Ceisteanna — Questions. Oral Answers. - Programme for Economic and Social Progress /Social Partners Meeting.

John Bruton

Ceist:

3 Mr. J. Bruton asked the Taoiseach if he will give details of the bilateral official meetings which have taken place, since 16 October 1991, with the social partners in regard to the Programme for Economic and Social Progress.

Bilateral discussions at officials' level between the Government and the social partners commenced on 16 October last.

The officials have met with trade union and employer organisations representatives each on four occasions and with farmer organisations representatives on one occasion.

The social partners have been briefed on the developments in the domestic and international economies and on the impact of these on the Exchequer finances and on the economic projections upon which the Programme for Economic and Social Progress was based.

The discussions cover a wide range of issues with the focus on what contributions the Government and the social partners, as partners in the programme, can make in order that the overall objectives of the programme can be met. These objectives essentially are to maintain the low-inflation competitive economy the Government and the social partners have together successfully established over the past four years.

The discussions at officials' level are ongoing but, arising from them, meetings between members of the Government and the social partners are envisaged in due course.

The outcome of the discussions will be taken into account by the Government in completing the Estimates and the budgetary preparations for 1992.

Can the Taoiseach say what is the deadline for the conclusion of these meetings in so far as they concern the Estimates for 1992 given that there are five working weeks only remaining in 1991?

The process is that the discussions between the social partners and the Government will be carried on contemporaneously with the preparation of the Estimates, but it is essential that the discussions with the social partners be completed before the Estimates are finalised.

Given that the Government have indicated their intention to publish the Estimates before 1992, would the Taoiseach say when does that mean that the talks with the social partners must conclude?

They will be concluded as expeditiously as possible. It is not possible for me to give a firm date at this stage. As I have said, the programme is to continue the discussions between the social partners because the outcome of those discussions will have an impact on our budgetary preparations. The intention is that the discussions with the social partners will be completed in time to enable the Estimates be finalised in accordance with our normal time-table.

May I ask the Taoiseach whether, arising out of his first reply, all of the social partners have agreed the Government analysis of the deterioration in the economic position internationally, in particular, whether the Government have requested the trade union movement to consider renegotiating the pay components of the Programme for Economic and Social Progress? In addition, would he say whether such an agreement is conditional on the Estimates being completed.

The general format of the discussions are as I have outlined here on a number of occasions. They are to indicate to the social partners the deterioration which has taken place in our rate of economic growth and, as a result, in the public finances. I am not aware that there is any substantial area of difference between any of the social partners and the Government on the general parameters of that picture. I can only repeat that the intention is to pursue as actively and expeditiously as possible discussions with the social partners; in those discussions, to review the prospects for 1992 and, correspondingly, the impact developments in 1992 will have on the budgetary position and on the targets set out in the Programme for Economic and Social Progress.

Have the Government conveyed formally to the social partners, particularly the representatives of Congress, the view of the Cabinet as expressed by the former Minister for Finance that the Government are not in a position to meet all the conditions of the pay agreement in the Programme for Economic and Social Progress? Is the acceptance of that indication by the Congress conditional on the Estimates being completed?

I do not understand the final part of the Deputy's supplementary.

I would love an answer to the first part.

I will certainly deal with the first part. The position is that the Government are outlining as fully as possible to the social partners the major difficulties which confront us in the preparation of the Estimates and in preparing the 1992 budget. Naturally public service pay is an essential element of that discussion.

May I ask the Taoiseach——

This can not go on indefinitely.

Did the Government representatives convey in private to the trade union movement what was conveyed in public over the airwaves?

I have nothing further to add.

We would love to hear.

We cannot debate the matter today.

The Taoiseach has stated that the intention is that the discussions with the social partners will be completed in time to enable the Estimates to be published before the end of the year. Is that the intention of the Government or is it an intention which is shared by all the social partners as well? Is it a joint intention or a Government intention?

It is primarily the Government's intention because it is the Government's duty to prepare the Estimates and make preparation for the budget. The social partners are fully aware of the Government's need to have the review of the Programme for Economic and Social Progress for 1992 completed so that the Estimates can also be completed.

I want to get to other questions. We cannot dwell unduly long on any one question.

Have the social partners agreed to that time frame?

The social partners are participating in the discussions on that basis.

Question No. 4.

I have been trying to ask a supplementary.

One very brief question.

The Taoiseach stated in his reply that the objective is to maintain a low inflation competitive economy. What discussions have taken place and what progress has been made in addressing the fact that we have 260,000 people unemployed? Does part of the discussion with the social partners envisage the creation of a jobs forum such as Fine Gael have been advocating for the best part of six months?

This is an extension of the question. I am proceeding to Question No. 4.

It is a relevant question. There are 260,000 people unemployed and in his reply the Taoiseach did not even mention that fact. Do the Government have any policy on unemployment at all?

Deputy Shatter should restrain himself.

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