Economic recovery talks to begin tomorrow

TALKS BETWEEN the Government and the social partners on its economic recovery programme are to get under way tomorrow.

However, the general secretary of the Irish Congress of Trade Unions (Ictu), David Begg, said yesterday the Government had not put any specific proposals on the table for discussion – particularly in relation to public sector pay – other than indicating that it wanted to reduce its cost base by €2 billion this year.

The Cabinet discussed how to achieve these cuts yesterday and will continue its discussions today.

Senior union leaders believe that at the talks tomorrow the Government is likely to give its response to submissions on economic recovery drawn up by the various social partners.

The union leaders believe any meeting tomorrow will seek to examine if there is any common ground between the parties.

They also believe the Cabinet will review the situation at next week’s meeting, and determine whether the process should continue.

The Irish Nurses’ Organisation had sought clarification on whether the issue of pay cuts is on the agenda for the proposed talks with Government.

The union, which represents about 40,000 nurses, has said it will not take part in any process that includes possible cuts in any form of pay, including allowances, increments or premium rates.

It is understood that the Ictu executive again stressed its opposition to pay cuts yesterday. Informed sources said the Ictu executive decided that it should expand on some aspects of its submission to the Government, particularly on its proposed social solidarity pact.

Ictu has argued that the talks on economic recovery could not deal exclusively with cutting public sector pay and services.

It wants a broad range of measures adopted as part of a social solidarity pact which would see various sectors contributing as their means allow.

Informed Ictu sources said one of the areas discussed was the introduction of a once-off windfall tax.

Ictu has already proposed that the Government should introduce a new 48 per cent income tax band and a new property tax on second homes and “trophy houses”.

Ictu’s submission also said that it was “open to discussions on how to constrain the growth in public sector pay and pension costs”.

Government sources yesterday said some groups, such as the farmers, have yet to make their submissions on the programme for economic recovery

It is understood that the Irish Farmers’ Association submitted its document yesterday.