Statement by the Taoiseach following a meeting with IBEC
The Taoiseach Bertie Ahern T.D. and the Tanaiste Mary Harney T.D. today met with representatives of the Irish Business and Employers Confederation (IBEC) led by Tony Barry, President and John Dunne, Director General to discuss a number of key issues including a review of progress on the implementation of the Partnership 2000 agreement, the outlook for the Irish economy and Ireland's entry into Economic and Monetary Union.
The Taoiseach emphasised the contribution that the social partnership approach has made to the successful management of the economy as reflected in strong employment growth, greater social inclusion and improved living standards. He strongly reaffirmed the Government's commitment to implementation of Partnership 2000 and to working with the social partners to strengthen the partnership approach.
Agreement was reached that the Government, IBEC and the other social partners would work more intensively in the coming year under Partnership 2000 to ensure that economic growth and its benefits are sustained.
The meeting noted that adherence to the terms of the Pay Agreement in Partnership 2000, in both the public and the private sectors, was crucial in this regard.
The Government, IBEC and the other social partners will develop a process to look in detail at ways and means of underpinning moderate wage increases with significant tax reform weighted in favour of lower and middle incomes. The meeting agreed that every effort will continue to be made to keep the rate of inflation as close as possible to the 2% average for 1998 recently forecast by the Department of Finance.
The flexibility and problem solving approach displayed by the Government and social partners over the past ten years will require an intensification to meet the competitive challenge of EMU. The Government, IBEC and the Irish Congress of Trade Unions have agreed to meet shortly in the context of Partnership 2000 to accelerate the preparation for the competitive impact of EMU.
The Government, IBEC and ICTU will also work together to develop Partnership at company level, especially through the National Centre for Partnership. The meeting confirmed the importance of modernising our industrial relations system including finalising the work of the High Level Group on Trade Union Recognition.