Does the Taoiseach recognise that the social partnership process is falling asunder? Does he realise there can be no meaning or future for it if the management of Irish Ferries gets away with dumping Irish-based workers and hiring vulnerable people who will be exploited through lower wages and poorer conditions? Is he aware that Irish workers in the public and private sectors are deeply concerned at the development and that they express that concern daily? The Taoiseach has condemned the Irish Ferries management, but what will his Government do about it?

Is he aware that a draft EU directive on ferry services was proposed by the European Commission but withdrawn in August 2004 because agreement could not be reached on the final text at the Council of Ministers? To his credit, a Fianna Fáil MEP, Mr. Liam Aylward, asked the Commission if it intended again to propose a directive on staffing conditions for ferry services operating not only between EU member states but linking such states with other destinations. Does Mr. Aylward's question reflect Government policy, and will the Government support and lobby for the reintroduction of such a draft directive so that social dumping on ferries and the setting of the lowest labour standards in order to exploit workers further can be combatted and ended?

The Deputy's two minutes are concluded.

On the same theme, this morning I met representatives of the Communication Workers' Union. Does the Taoiseach not also recognise that, in An Post's refusal to pay increases due under Sustaining Progress, its management is also contributing to the further erosion of confidence? The future of social partnership has seriously been called into question. What is the Taoiseach's view of IBEC's support for An Post management, and what will he do? Will he call on An Post to pay the due increases to its 8,500 workers——

The Deputy's time is concluded.

——recognising that only by doing that can we reach a situation where we can hang on to the Sustaining Progress agreement? All the issues that An Post wants to bring to the table can then be substantively addressed by the CWU on behalf of its membership.

I have answered the Irish Ferries point three weeks in a row, but I will briefly recap by saying that the issue is before the Labour Court. As Deputy Ó Caoláin stated, we have examined our legislation at both European and national level. Last week Deputy Rabbitte also made some proposals in this regard. We must see if there is a way of dealing with ships registered offshore that endeavour to use this country but keep their staff totally outside its jurisdiction. I have been advised to date that no law can do that. There is no relevant European law, and even if there were one, many of the flags of convenience linked to other places would remain outside of European Union law and the legal difficulties in trying to implement this would create substantial difficulties.

I met Irish Ferries management at the beginning of last week. I outlined the difficulty that its actions have caused. It made all its arguments to me, but I do not accept that the procedures it used are valid. I know it argues that nearly all its workers have applied for redundancy. It wishes to deal with that, but it has created difficulties in the wider trade union movement. It is a bad practice to remove Irish jobs in order for others to come in on lower rates. I have heard arguments in that regard outside the House, but I still do not agree with it and I have made my position very clear. I have agreed to work with the unions to examine its legality. The Minister has already done so and set out a detailed case to the unions. Regarding IBEC agreeing with the employers, it is the employers' organisation. Since it tends to agree with employers, that does not surprise me.

On the issue of An Post, the membership of the CWU has voted for strike action on the basis of the non-payment of Sustaining Progress increases. The union has granted the company 14 days before industrial action. That will expire on Friday. Talks are ongoing today to see what, if anything, might be done to deal with that. I do not want to say anything about them, other than to say that I naturally hope that they facilitate an acceptable agreement.

On the pay issue the Deputy raised, the membership of the CWU voted for action, but it is not clear what form that action might take. At the request of the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, the implementation body will facilitate today's talks between the two sides to find a resolution in the context of the Labour Court recommendation to which I referred last week. The AHCPS, the PSEU and the CPSU have referred the non-union payment of Sustaining Progress to the Labour Court for determination. The Labour Court decided that members of the AHCPS and CPSU have agreed and implemented change agreements and on that basis are entitled to Sustaining Progress increases as set out in the Labour Court recommendations issued last summer.

That means that Sustaining Progress payments due this year and next will be paid from the due dates. That due in 2003 and 2004, which amounts to 5%, was paid to An Post employees and pensioners from 1 January 2005 on foot of the assessor's report, and retrospective payments due will be considered in the context of the company's financial situation. The recommendation made regarding the PSEU is that, where it agrees and implements changes to work practices, Sustaining Progress will be paid on the same basis as to members of other unions.

An Post has accepted the Labour Court recommendation and stated that pensioner members of the AHCPS, CPSU and PSEU will also receive payments under Sustaining Progress. As I understand it, An Post is prepared to continue negotiations on that basis.

I have outlined the position in full regarding all the unions involved. Needless to say, I hope the discussions on the remaining parts will be successful.