Sustaining Progress - Department of Taoiseach

Chapter 1 Sustaining Progress
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■ While Ireland continues to have a tax and welfare system that significantly reduces the degree
of inequality in market incomes at any given time, and changes in the welfare system have
contributed to a number of positive social developments, the overall balance of tax and welfare
changes have been more favourable to those on higher incomes.” (NESC, p.41-43)
The materialisation of these economic and social vulnerabilities provides the agenda that must be
addressed if Ireland is to achieve fair and sustainable economic and social progress.
1.4 The role of Social Partnership in Addressing Key National Issues
Social Partnership is a problem solving process, which has been developed in Ireland over the past
fifteen years. This has been reflected in the status of the participants in the social dialogue process.
It is also reflected in the acceptance that problems can best be solved in modern governance only
with the active involvement of the relevant stakeholders and that, as the NESC has observed “the
Government has a unique role in the partnership process. It provides the arena within which the
process operates. It shares some of its authority with social partners. In some parts of the wider policy
process, it actively supports the formation of interest organisations”.
At EU level also, there has been a history of participation by social partners in social dialogue.
This takes place through the different methods of consultation and involvement provided for in the
European Treaties and by agreement with the Commission, including through the arrangements for
dialogue between labour and management at EU level and through the EU Open Method of Coordination
(OMC) which provides for social partner participation in discussion on policy and exchange
of good practice in such areas as poverty and social inclusion, youth, employment and education.
In Chapter 3, the broad macroeconomic challenges now facing Ireland are set out. The chapter paints
a picture of considerable uncertainty in the global outlook. In that context, the NESC has
recommended that partnership:
■ be structured to address the most pressing vulnerabilities and problems while attending
to long-term development;
■ remain flexible; and
■ can be most effective in focusing on concrete projects, joint action and deliberation based
on experience.
NESC has also concluded that clarity is desirable on issues that can be decentralised and do not need
to be on the agenda of national partnership, issues that are national, but could be addressed more
effectively if there were more focus on implementation and issues that require to be in the social
partnership process at national level, which might be either:
■ national-level policies; or
■ local or sectoral issues, but where the national-level social partners can contribute collectively
and individually.
This approach has been followed in the construction of this new Agreement. Against this background,
Government and the social partners are agreed that the proposed new approaches are required, in the
light of this uncertain environment and a broad consensus on the need for a more streamlined and
effective consultation and review process.