Government says no deal agreed on unpaid leave

The Government insisted today that no deal has been reached on unpaid leave in ongoing talks with unions over plans to save €1.3 billion in the public sector pay bill.

Tánaiste Mary Coughlan told the Dáil that the "adjustment" of €4 billion required to the public finances would take place and that the final decisions would be brought to the House on Budget day next Wednesday.

"The Taoiseach indicated that what was brought forward by the unions on Tuesday was inadequate. The unions indicated that they wished to revise and reconsider their proposals and bring them back to the Government. There are ongoing discussions today, so let us await the outcome," Ms Coughlan said.

"As the Taoiseach has said categorically, at the end of the day the Government will make a decision on the basis of a €4 billion adjustment. Those decisions will be finalised and brought to the floor of this House at 3.45pm next Wednesday."

Ms Coughlan said the methods by which change could be achieved "must be workable and permanent, and must participate as part of our financial adjustment".

"We are prepared to listen to what other people have to say in the context of bringing matters to finality. Following on from the discussions the Taoiseach had on Tuesday, the unions indicated that they would consider further options. That is why we are continuing to have discussions this morning. It is clearly the Government’s intention to bring those discussions to finality at an appropriate time, which will be well in time for the budget on Wednesday."

Ms Coughlan was responding to Fine Gael leader Enda Kenny, who asked whether it was true that the Government was waiting for new ideas from the trade unions.

"Is that true or not? While it is in order for trade unions and their representatives to negotiate with the Government, it is the Government’s responsibility to make decisions. However, the Government is paralysed by an inability to make any decision," Mr Kenny said.

"There is no confidence, no morale and a wave of depression throughout the country because the Government has no fix on the future. It appears completely unable to act."

"Has the Government set a deadline for the current discussions with trade union representatives to conclude today, tomorrow, at the weekend or on Monday, so that there will be some certainty about what the Government will present on 9 December? This is very important for everybody in the country and for our economic well-being. It is time to stop messing around."

Speaking this morning, Minister of State for Science, Technology and Innovation Conor Lenihan stressed that no agreement has been concluded over the introduction of 12 days of unpaid leave for public service staff.

Fianna Fáil backbenchers were also meeting today to discuss next week's Budget. The TDs were expected to use the meeting to express their concern over the proposal to cut the public sector pay bill by €1.3 billion, which many of them believe to be unworkable.

A number of backbenchers contacted by The Irish Timesyesterday expressed unease over suggestions that the target for savings of €1.3 billion could be dropped after unions cancelled a planned one-day strike in order to negotiate a deal that could see the introduction of unpaid leave as an alternative to pay cuts.

Under the proposal the measure would be replaced in 2011 by a transformation programme for the public service which would include job reductions, improved productivity and work practice changes.

Backbenchers said there had been negative reactions to the proposals from constituents who considered the proposed unpaid leave scheme as a capitulation by Government to the unions.

Speaking on RTÉ's Morning Irelandearlier today, Mr Lenihan said the negative reaction to the plan was based on a misunderstanding which had occurred due to an inaccurate report in the media.

"Of course our TDs are very angry. Lots and lots of people have been phoning in to their constituency office complaining about this particular thing based on the misunderstanding that there was already some sort of done deal. It is not a done deal,” he said.

he 24/7 Frontline Alliance was also critical of some media coverage of the proposal which it described as "mischievious" and "misleading."

Speaking on behalf of the alliance, David Hughes of the Irish Nurses Organisation (INO) said the measure under discussion "is the equivalent of mass lay-offs in the private sector" with the only difference being that public sector workers would not receive any social welfare payments.

Fine Gael's finance spokesman Richard Bruton today criticised the unpaid leave proposal and called for an outright pay cut for public sector workers.

Elsewhere, ISME said that companies in the private sector were extremely angry over the proposed plan and have warned they may withold taxes if it proceeeds.

“The ISME phone lines have been hopping, with members who are so outraged with the decision that they feel they have no option but to withhold taxes in a form of protest at the ongoing charade," said the association's chairwoman Eilis Quinlan.

"At a time when Small businesses are shedding jobs and struggling to survive, the public sector, once again, are allowed off the hook by a weak kneed and lily-livered Government," she added.

Elsewhere, INO general secretary Liam Doran has been criticised after he called on people "to back off and keep their mouths shut" while talks between the Government and unions were ongoing.

Fine Gael 's enterprise spokesman Leo Varadkar described Mr Doran's remarks as being "totally out of order".