THE farming organisations warned yesterday that any new national pay agreement would have to consider the implications for Ireland's competitiveness if Britain stays out of Economic and Monetary Union (EMU).
They said they feared for Irish food exports to the UK if sterling is effectively devalued.
The period of a new programme will include the target date for Ireland's participation in a single currency, the IFA president, Mr John Donnelly, said. He believed the agri food sector was one of the most vulnerable to a future devaluation of sterling.
"I wish to stress that the Government and the EU have a duty to ensure that there will be adequate safeguards in place to protect the exposed sectors of the economy," Mr Donnelly told the meeting in Dublin Castle.
The IFA has decided that it should be involved in the opening discussions on a new national programme, Mr Donnelly said.
The ICMSA president, Mr Frank Allen, said it fully supported the principle of the partnership approach. However, he, too, warmed about dangers of participation in an EMU which did not include Britain. Mr Allen said the ICMSA supported Ireland's full participation in EMU because of the promise it holds out of lower interest rates and continuing low inflation.
Bitt, Mr Allen added, all the requirements for full participation are not currently in place.
"The problems which will confront the agricultural and food sector should the UK remain outside the EMU have not been addressed to date. The new national programme must specifically provide for adjustments to offset losses if the UK opts out of EMU and sterling depreciates," Mr Allen said.
The president of ICOS, Mr Michael O'Dwyer, said Ireland had little control over its currency but it could control the cost of employment. "Achieving tax reductions and employer PRSI reductions is an important part of keeping business competitive", Mr O'Dwyer said.