Everybody in the country recognises the scale of the challenge facing our economy and our people as a nation. The announcement by the Dell Corporation yesterday will send shivers down the spine of many involved in employment. Dell is an iconic employer, listed No. 34 on the Fortune 500, with massive revenue all over the world. These job losses in Cherrywood and in Limerick are obviously a cause of concern for everybody, principally because those involved are mainly young workers and this is happening at a time of deterioration in our economy, which means it will be a great challenge for Government. In that sense, the loss of competitiveness in recent years is a cause of serious concern.

The fact that there are nearly 200,000 people on the live register, we have had the highest inflation rate in the euro zone in recent years, this situation leaves almost 100,000 young people facing negative equity, there is a collapse in the housing market and a virtual total collapse of the second-hand car market are also causes of concern to many people. The Tánaiste and Minister for Finance, Deputy Cowen, will be acutely aware of the implications of all this.

We are leading into a position where the Government enters seriously pay talks at a crucial time. This is obviously a matter of grave concern to workers and unions who represent them. From that perspective, the Tánaiste spoke out last week about the high pay increases given to persons in the private sector. He will recall that the pay increases recommended for Ministers and members of the Government are directly linked to those pay increases. In the context of those crucial pay agreements, will he, as Tánaiste and Minister for Finance and as Taoiseach elect, show an act of leadership by rejecting, instead of deferring, the recommended pay increases for Ministers in view of the fact that workers all over the country are being asked to tighten their belts?

On the situation Deputy Kenny refers to regarding the slow-down in global growth, from which we will not be immune, it is clear that the issue of competitiveness and higher productivity is critical to ensuring that we come through this period in the economic cycle better than others, as we did in the past. In the context of pay talks, which have just commenced, I indicated the need to focus on increased productivity as a criterion that needs to be addressed in the context of any suggested pay increases because it is the only way in which we can maintain jobs and not see a deterioration in job security in the economy generally.

The Deputy referred specifically to the remuneration body which came forward with benchmarking for higher paid officeholders, including politicians. As he will be aware, we made a differentiated decision on politicians vis-à-vis other high earners. The pay talks have just begun and I do not intend to anticipate the outcome of those discussions except to say that obviously the Government is anxious to sit down with partners and address the issues in a way that will meet the requirements of everybody.