TAOISEACH Brian Cowen said that contacts on the social partnership process would continue, and denied that the Government had collapsed the talks.

He said there was a very solid measure of agreement with the social partners.

However, he said turning that into a formal accord, which could be ratified by the members of the various social partnership pillars, was proving difficult.

“Far more unites than divides us, and the Government will engage with the social partners in an effort to bring finality to the recent talks process over the coming days and weeks,” said Mr Cowen.

“Whatever the outcome of the engagement, I believe dialogue, against a background of shared interests and objectives, will continue.’’

Labour leader Eamon Gilmore said it looked as if Mr Cowen would be the first Taoiseach in 22 years not to conclude a social partnership agreement with the trade unions and employers in circumstances where there seemed to be remarkable common ground between Ictu and Ibec on key issues.

“Is it not the case that the Government has collapsed the social partnership process?

“It is over and however he may try to put it back on life-support, or try to have further meetings to maintain the fiction that social partnership is continuing, nothing of any real significance will be agreed in the process.”

Mr Cowen replied that the contention that the Government had collapsed the talks was totally untrue.

He added: “I value the social partnership process, and I believe it is an essential aspect of governance in a modern, democratic society, especially in a small, open economy like ours where consistency of approach is helpful for economic and social wellbeing.

“It is true that we have, as yet, failed to arrive at a basis for a formal agreement with the social partners.

“However, we remain committed to the approach and objectives agreed with them in Towards 2016, the 10-year framework agreement that remains in place and to which we are all working.’’

Mr Cowen said there had been a great deal of discussion with the social partners.

“Complex issues have been discussed and teased out, but there are difficulties and problems,’’ he added.

“There is certain room for manoeuvre for Government, but the process has been beneficial and productive.’’

Pressed further, the Taoiseach said that the Government was not suggesting that there should be a different type of social partnership.

“We are trying to provide agreement on the issues of concern that have been raised by the social partners.

“There are structures that will continue to be utilised with or without an agreement.’’

Sinn Féin’s Aengus Ó Snodaigh suggested that the Government ditch the public service pension levy “which Ictu rightly described as crude and unfair and part of a strategy to drive down wages across the economy’’.

Mr Cowen replied that he was not in the position to ditch a pension levy bringing in the sort of money that it did, given the importance of the changes made in the budget.