The first meeting of the Government with the Irish Business and Employer's Federation (Ibec) and the Irish Congress of Trade Unions (Ictu) since the general election was held in Dublin today with the effects of inflation the main topic of conversation.
Minister for Enterprise, Trade and Employment Micheál Martin confirmed afterwards that the Government will provide further mortgage interest relief in the December Budget after concerns were raised by the social partnership groups about the effect of interest rates on homeowners.
A statement released after the meeting by the Department of the Taoiseach said that all sides had acknowledged the extent to which inflationary pressures threatened the achievement of the objectives of the "Towards 2016" Pay Agreement.
The Government, represented by the Taoiseach Bertie Ahern, Tánaiste Brian Cowen and the Minister for Finance Michael Martin, said they would make policy "to the greatest extent possible" with a view of minimising inflationary impacts and keeping costs for enterprise under control.
All sides agreed to co-operate "in response to the inflationary pressures within the framework of the Pay Agreement".
It was agreed that a further meeting would be arranged involving the Taoiseach and Ministers to review the progress made in addressing these issues.
The Taoiseach told the union leaders that the Government was committed to engaging fully with the social partners to secure full implementation of the wage deal.
He said that maximising the quantity and quality of jobs in the economy was crucial in the years ahead.
"This underlines the importance of sustaining and deepening the competitiveness of the economy, across all headings," the statement added.
"The Government reaffirmed its commitment to framing public policy over the period ahead with a view, to the greatest extent possible, of minimising inflationary impacts and keeping costs for enterprise under control."
In response Ibec said that the best way to address inflation is to boost competition and increase productivity.
IBEC Director General Turlough O'Sullivan said: "We need to trade our way out of this by boosting competition and increasing productivity".
Ictu representatives also highlighted the problem of workers with higher housing expenditure as a result of higher mortgage interest rates.