I join with the Tánaiste and the leader of Fine Gael in expressing the hope that the talks in Belfast will reach a successful conclusion. On behalf of the Labour Party, I want to say we support the efforts of the Taoiseach and the British Prime Minister in trying to bring about a resolution to matters, in particular the long-awaited devolution of the policing and justice powers to the Northern Ireland Assembly.

I want to ask the Tánaiste about pay. By the end of this week every employee of the State will have his or her pay cut for the second time in less than a year. Workers in the public sector earning €25,000 a year will have their pay cut by €160 a month, the pay of a garda or teacher in the middle of his or her scale will have been cut by €400 a month and that of a staff nurse with ten years experience will have been cut by €560 a month.

Does the Tánaiste appreciate the level of anger among such State employees? That anger has been compounded by the sweetheart arrangement which the Government made with senior civil servants to limit the impact of the pay cuts on those senior officers. We are now beginning to see pay cuts in the public sector being used to drive down levels of pay in the voluntary and private sectors. I have a circular which was issued by the HSE to agencies and charities it funds, directing them to cut the pay of their staff by the same amount as cuts in the public sector, even though there is no legislative basis for that. In addition, those staff are not public servants and were not included in the legislation passed by the Oireachtas before Christmas.

Over the weekend we saw reports of plans by the Government to provide for an inability to pay provision in respect of some categories of workers who are covered by legally enforceable minimum rates of pay. There have been repeated reports that it is intended to cut the national minimum wage.

I have three questions for the Tánaiste arising from that. First, what assurance, if any, can she give to workers who have had their pay cut not once but twice over the last year that they will not have their pay cut again? Second, can she tell us on what legal basis the HSE, or any other public authority for that matter, is issuing directives to agencies funded by it that they have to cut pay the same as for public servants? Third, will the Tánaiste rule out cutting the national minimum wage?

I acknowledge the Labour Party leader's comments on the talks in Northern Ireland. We all agree on wishing those involved well.

As regards the pay reductions that have taken place within the public service, all of us who work with public servants daily are aware of the anger, disappointment and distress these have caused. It is equally important to say that these difficult decisions had to be made on the basis of the economic difficulties the country has to grapple with currently. Dealing with the stabilisation of our public finances is one of the parameters by which we can return to economic growth. We are aware that notification has been given of industrial action. If necessary, the Government will certainly be open to any opportunity to discuss those issues with the relevant representatives. However, all of that would have to be in the context of meaningful engagement and the creation of conditions for meaningful engagement would be equally important.

I note that the Deputy raised the HSE issue with the Taoiseach last week. Unfortunately, his letter to the Deputy has not yet been signed as he has not been available to do so. On the Taoiseach's behalf, however, I can say that following the matter raised by the Deputy, the HSE has advised that this circular was sent in error.

That will be a relief.

Professor Drumm has issued a clarification to those people in this regard.

It is important to reiterate the absolute necessity of having clarity on the minimum wage. Changes to the minimum wage, if any, will be done in the context of proposals that will come from the Labour Court. They are currently with the Labour Court and I am not in a position to make any adjudication until that matter comes to my desk. I must, therefore, be independent in making any determination on it. However, EROs and REAs have caused a slight mix-up in the media recently. That legislation is coming to this House today whereby an inability to pay clause will be introduced by the Government for consideration here. As the Deputy is aware, there is already an inability to pay clause in the minimum wage legislation, but from what I can ascertain it has never been used. This is being introduced in the context of representations that have been made by Members of this House and others, whereby an agreement has been made between employers and employees to reduce wages to keep people in work. That is legal in the context of REAs and EROs. On that basis, we have introduced a sensible approach to addressing issues of real concern to employers and employees so that they can remain within the parameters of the legislation and not work outside it. We are taking a sensible approach to keeping people in their jobs.

One will always have a job if one works for nothing.

I welcome the Tánaiste's statement referring to the letter that is on its way to me from the Taoiseach to the effect that the HSE circular was issued in error. Can I take it that agencies which do not comply with the stated wishes of the HSE to cut staff pay will not, as a result, have their allocations cut correspondingly by the HSE?

I note the Tánaiste has hedged her bets on the national minimum wage. As I understand it, that issue has been with the Labour Court since November 2008. We do not seem to be any further advanced on it. We hear every day that the Government wants to restore confidence, purchasing power and get retail activity moving again. However, it is difficult for people, particularly those on low pay, to make purchasing commitments if they do not know what their wages are going to be next year. It is time the Government came off the fence concerning the national minimum wage. It should give a categorical and fair assurance that the national minimum wage will not be cut.

I do not want to anticipate the debate on the Bill and the Government's amendment with regard to the inability to pay clause for EROs. However, I interpret what the Tánaiste is saying to mean that it will only apply on a voluntary basis. If that is the case, so be it, but let us see what is actually being proposed by the Government.

The one question the Tánaiste did not reply to was when I asked her for an assurance that workers who have taken a pay cut, and particularly those who have had their pay cut twice in the past year, would not have their pay cut again. At the weekend, we heard the Taoiseach's radio interview in which he spoke of the necessity for restoring confidence to the economy, all of which we agree with. However, if people are to have confidence in the economy and consumer confidence is to be restored, people need to have some certainty about their earnings. Will the Tánaiste give an assurance that the Government will not be going back a third time to cut the pay of employees whose pay has already been cut?

As regards the legislation before the House, the Minister of State will take on board the views expressed by Members of the Oireachtas. We are providing a statutory basis to allow an inability to pay clause for REAs and EROs. It has not been made available heretofore, but is available within the minimum wage legislation. It is a practical and pragmatic response to issues raised by Members of the Oireachtas, as well as by employers and employees in the context of keeping people in work.

On the HSE issue, the Taoiseach's letter indicates that the HSE issued an early warning notice to its grant-aided voluntary agencies, anticipating incorrectly that the pay reductions for public servants under the financial emergency measures would automatically apply to their agencies. In fact, grant-aided agencies funded under section 39 of the Health Act 2004 are not directly affected by pay adjustments provided for under the financial emergency measures. Therefore, as they are not public service bodies as defined in that Act, their employees are not public servants. That matter has been clarified for those employees. I can forward the letter to the Deputy when it has been signed.

With regard to assurances as to what will happen in the future, we have just completed the budgetary process and the Finance Bill has yet to be brought before the House. Therefore, nobody on this side of the House is in a position to predetermine what will happen in the context of budgetary adjustments next year. However, the Government is still very anxious to involve itself in public sector reform. That reform will create savings and will, therefore, have a positive effect on the need for any further financial adjustments in next year's budget.