Taoiseach says social partnership a success

The Taoiseach today highlighted the success of social partnership in response to the Economic and Social Research Institute's…

The Taoiseach today highlighted the success of social partnership in response to the Economic and Social Research Institute's call for a more flexible model of national wage agreement.

Bertie Ahern
The Taoiseach Mr Ahern.

Mr Ahern was speaking at the announcement of a new authority - expected to be in operation by 2003 - which will oversee the management and implementation of existing land use and transport plans in the greater Dublin area under the National Development Plan.

In its quarterly commentary today the ESRI predicted a significant fall in GNP growth this year arising out of uncertainties emerging from the US slowdown and foot-and-mouth.

The report warned that the Government would have to adjust its policies to ensure it could deal with the "inevitable setbacks" this would cause.

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The main economic success in this country is the result of social partnership
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Bertie Ahern

The institute also criticised the present wage deal and said its rigidity did not allow for reduced pay increases in an economic downturn and said the new national savings scheme was a missed opportunity to link savings to wage bargaining.

Mr Ahern said: "The main economic success in this country is the result of social partnership." He emphasised the ESRI report's finding inflation was expected to lower further over the coming years.

He also said that despite reduced growth demonstrated in exchequer results for March Ireland's economic prospects were currently still double that of any other EU member-state.