I propose to take Questions Nos. 7 and 38 together.
The National Recovery Plan 2011-2014 sets out in detail the measures that will be taken to put our public finances in order and provides a blueprint for a return to sustainable growth in our economy. The plan identifies the areas of economic activity which will provide growth and employment in the next phase of our economic development. It specifies the reforms the Government will implement to accelerate growth in those key sectors.
I have consistently held that we need to ensure that statutory wage fixing mechanisms work effectively and efficiently and that they do not have a negative impact on economic performance and employment levels. I have urged all parties to these mechanisms and agreements to recognise the need for more responsiveness and flexibility in the operation of these wage determination procedures. The House will be aware that I have proposed to introduce an inability to pay mechanism for both registered employment agreements and employment regulation orders in the Industrial Relations (Amendment) Bill 2009.
It is within this context that the Government has decided that a formal independent review of our statutory wage setting mechanisms, employment regulations orders and registered employment agreements should be undertaken within a short timeframe. The precise terms of reference and process for the review are currently being worked out and will be agreed shortly in consultation with the European Commission. It is expected that the review will commence early in the coming weeks. While no new legislation is necessary to facilitate the review, the Government is committed to taking urgent action, including making any legislative provision which may be necessary, following consideration of the recommendations from the review.