Agreement reached in social partnership talks

Social partnership talks between the Government, IBEC and ICTU have reached an agreement.

The proposals include special measures to assist the manufacturing sector, address the energy crisis and support balanced regional development.

In the proposed new agreement they acknowledged the critical role of manufacturing in the Irish economy, and recognised the challenges facing the sector and the role each can play in addressing these.

A new High Level Manufacturing Group, chaired by a prominent industry figure, will be established to review the full range of challenges facing the sector and identify practical measures to boost productivity.

The business and employers group IBEC today welcomed the agreement at the social partnership talks as the best that can be achieved at national level.

IBEC Director General Turlough O’Sullivan said: "Our ability to trade successfully has been under increasing pressure recently with business costs having increased much faster here than in other countries.

"The current pay proposals are at the very limit of what the country can afford. We are entering very uncertain economic conditions and there is a particular need to support the manufacturing sector, which is experiencing serious competitive pressures."

Energy costs and concerns regarding security of supply are key issues for IBEC members and the new agreement sets out specific targets.

These include the publication of the Green Paper on National Energy Policy by mid-2006 and the establishment of the Single Electricity Market by July 2007.

The proposed agreement also sets out a series of important measures to promote balanced regional development, which was a key issue on IBEC’s agenda at the talks.

"The negotiations have been particularly difficult and time consuming on this occasion. It has taken far too long to get to this point and it is important such delays do not become a feature of any future talks," said Mr O’Sullivan.