The final details of a new social partnership programme, entitled "Towards 2016", will be agreed shortly between the Government and representatives of the farming community, before the completed document goes forward for ratification by trade union and employer bodies later this summer. Negotiations on the new deal were the most difficult since the process began. And particular weight was given to measures designed to protect employment standards and to prevent the exploitation of workers.
The public has become somewhat blase about the importance of national agreements. After all, they have been around since 1987. But, although their format and compass has changed significantly in that time, they still fulfil a vital role in ensuring industrial peace and in providing a platform for continued economic growth. Other countries look with envy at the progress that has been achieved through our social partnership model.
Of course there are shortcomings. In particular, the public service is seen to have benefited excessively from such agreements, in the absence of the major reforms and productivity arrangements that were visited on the private sector. The disparity was exaggerated through the introduction of benchmarking in 2004. And a second review is under way. Public servants are already well paid. More importantly, they enjoy extremely generous and expensive pensions. A new balance should be struck between the public and private sectors.
At the heart of the new programme is a pay deal that offers workers a 10 per cent pay increase over 27 months. The employers' body Ibec insists that is at the very limit of what can be afforded. And, given rising inflation and falling productivity, that may be so. In securing the increase, however, unions were forced to abandon their demand for a local bargaining clause. Concessions have been made by both sides on aspects of pay and working conditions. And the Government is committed to producing a Green Paper on private sector pensions within 12 months.
A very extensive document outlining social objectives has also been adopted. This 10-year scenario covers healthcare, child poverty, social housing, education, social welfare and transport. And, given our unfortunate position as the second most unequal society in the developed world, it is urgently required. As on previous occasions, however, the targets set are largely aspirational and accord in broad outline with existing Government policies. Their implementation will rely on the buoyancy of the State's finances. There are storm clouds on the economic horizon. And the Government has phased its social commitments over a number of years to guard against a possible fiscal downturn. The new National Development Plan, due in January, is also expected to concentrate on strategic approaches, rather than provide a list of projects with costings and timescales. Whatever about such matters, the social partners are to be complimented for delivering on a basic pay agreement.