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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Inflation Rate.

Wage moderation and national understanding

Summary

Kelly accuses the Government of setting a poor example on wage moderation through public-sector settlements and the national understanding. The Minister says the pay element was settled by employers and unions, with the Government participating as an employer; the exchange ends as the Ceann Comhairle calls the next question.

Arising out of the Minister's answer to five questions taken together in which he laid stress on the importance of wage moderation in the context of controlling inflation, will the Minister not agree that his own Government have given a very poor example in this matter? On the one hand, they conceded increases in the public sector that were beyond even what an arbitration board had recommended while, on the other hand, they are led by a man who twisted the arms of employers into accepting a grossly extravagant national understanding and which was recognised as such by the independent commentators the Minister was talking about recently.

Comment on this
Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

This is another area on which I have asked the Deputy some questions. He is talking about an over-extravagant national understanding——

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That is what it was called by the independent commentators the Minister was talking about——

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

I have asked the Deputy to suggest a different formula but he has not done so.

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Is it not the case that in the settlements over which the Government have direct control, in other words in the public sector, and in the conclusion of the national understanding which the employers resented and about which they complained, the Government themselves have given the worst possible example with regard to wage moderation. We do not want any more of this hogwash——

Comment on this
Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

I shall inform the Deputy of the situation because it appears he does not know as much as he pretends. The settlement of the pay element of the national understanding is for the Employer-Labour Conference, directly between the employers and trade unions, with the Government involved as employers only. The Government are directly involved with regard to the other aspects of the national understanding but the pay element is settled within the Employer-Labour Conference.

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Is it not the case that the reputable independent commentators— although they could not be found yesterday—and the employers regarded, and still regard, the figure at which they were arm-twisted into settling the national understanding as excessive?

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Garrett Fitzgerald Mr. G. Fitzgerald Fine Gael

I have already answered the Deputy's question. The pay element of the national understanding is a matter for the employers and trade unions and the Government as an employer.

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The Government are the biggest employers——

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Padraig Faulkner An Ceann Comhairle Fianna Fáil

I am calling on the Minister to answer Question No. 27.

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