The Taoiseach, Mr Ahern, has reiterated the Government's intention to honour the benchmarking agreement, but warned there needs to be a radical change in the workings of the public sector.
Speaking at a conference to mark the 30th anniversary of the National Economic and Social Council (NESC) in Croke Park, Mr Ahern said the the Government had an "obligation" to ensure the public receives value for money public services.
The only way to acheive this, he said, is through the Sustaining Progresspartnership agreement. "If public servants continue to demonstrate their willingness to rise to the challenge and make real long term improvements in services and value for money, we will have succeeded together in transforming the public service into a modern, dynamic sector that serves the public and rewards its employees," he said.
That, he said, would be a "momentous" achievement.
He said Ireland's system of public partnership is regarded as a role model throughout Europe and beyond.
"Many of our European neighbours look to Ireland as a small nation that has managed to turn our economy around from a situation of mass unemployment and emigration and a sluggish economic performance in the 1980s, to the type of success we reached during the Celtic Tiger.
"Throughout the recent global and domestic economic downturn, we have continued to defy the most testing of circumstances," the Taoiseach added. "Our challenge now is to hold our course, remain committed to our agreements and continue to demonstrate through our actions, the integrity and the value of the social partnership system we have created."