Howlin broadly supportive of new talks with the social partners

Minister for Public Expenditure Brendan Howlin has signalled broad support for renewed talks with the social partners but said the scope of any new arrangement was not settled.

At a press conference in Dublin on Monday, Mr Howlin noted his previous indication that talks on public pay would take place with trade unions before emergency laws to cut pay expired.

While it remained an open question as whether the talks were broadened to include discussions on tax, Mr Howlin said the Oireachtas would have to be included in any renewed partnership process.

“One of the deficiencies recognised in formal social partnership was the exclusion of the Oireacchtas,” he said.

At the same press conference in Dublin, Minister for Finance Michael Noonan said the idea was not very advanced. He cast the notion as an effort to consult the people between elections through representative groups and civic society organisations.

At issue was the question of taking a first step towards including civil society in the effort to secure the recovery.

“Rather than having the re-establishment of social partnership, which at the end was a failure, I would like to see something where people had a way of inputting between elections,” Mr Noonan said.

“We are initiating a discussion, we’re taking the first steps.”

Mr Noonan and Mr Howlin were speaking alongside IMF chief Christine Lagarde after talks in Government Buildings.

Asked what her message was to Irish politicians as thoughts turn to the election to come, Ms Lagarde said the IMF does not get involved in elections but indicated it was important to bed down the recovery.

“There have been massive efforts, huge sacrifices, and a tough journey by the Irish people,” she said.

“Clearly it would be in the best interest of financial stability and economic stability to secure all that stability and secure that confidence that has been generated by that journey.”

The “true heroes” of the recovery were the Irish people and their public representatives, she said.

The reduction in unemployment and the budget deficit provided strength and, hopefully, the stability required to encourage households, small business and big companies to invest.

“This [aspect] of stability is pretty important,” she said, citing the need to create more jobs. “Job numbers are still not optimal. Those are the key lessons I’d like to convey.”

Ms Lagarde was also asked about reports that national central banks will remain on the hooks for any losses on sovereign bonds if the European Central Bank proceeds with a quantitative easing scheme on Thursday.

Although it remains unclear whether the ECB would move in that way, she expressed the view that greater mutualisation of the effort would be better.

“First of all I would rather refrain from extensive comment until such time as QE is eventually announced,” she said.

“The more efficient it is, the more mutualisation, the better.”

Ms Lagarde reiterated her scepticism - set out first in an interview today with The Irish Times - about the notion of a debt conference for Greece.

“I think there is no better response to growing yourself outside of debt than growth, that’s the ideal example of Ireland. Hopefully this is the collective route the Europeans can adopt.

“There is an issue of confidence, an issue of reliability on financial markets that has to be taken into account, let’s get the growth going.”

In a private meeting last week with senior diplomats, Mr Noonan responded positively to the notion of a debt conference in which the liabilities of other crisis-struck countries such as Ireland would be discussed.

Mr Noonan said he would not say anything to interfere in the Greek internal politics ahead of its general election next Sunday and added that opinion polls in the country were notoriously poor.

“On the issue of stitting around the table and discussing matter, that’s the European way,” he said.

“It would be better to have a forum for discussion which would lead to a solution rather than acting unilaterally.”

Ms Lagarde said the current IMF review of the Greek bailout, deferred for the election, would resume as soon as the political situation settles. Greece had made commitments in relation to structural reforms and she hoped the country would respect such commitments.