'No wish' for further public service pay cuts, says Cowen

THE GOVERNMENT has “no wish” to seek further cuts in public service pay if the unions engage in talks on other reforms, according…

THE GOVERNMENT has “no wish” to seek further cuts in public service pay if the unions engage in talks on other reforms, according to Taoiseach Brian Cowen.

Mr Cowen said “the reversing of budgetary decisions that were made two months ago is not an option that is available to the Government”. The situation “requires us to look at other areas now”.

He said there was a need for the unions to “engage” to agree to public sector reforms, “that will result in greater efficiency, better services for the public and more satisfactory work conditions for public servants”.

The Taoiseach added: “I don’t believe that an escalation of industrial action will bring any benefits to citizens or public servants.”

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During Taoiseach’s questions Fine Gael leader Enda Kenny called on the Government “to give an assurance that there would be no additional pay cuts in the next budget . . . This would allow for a position where negotiations and discussions could begin again”.

He said the “most recent pay cuts could be reversed over time as new contracts and new work practices in the public service are adopted” and “provided the new contracts deliver better public services and real savings for the public”.

Earlier, Sinn Féin Dáil leader Caoimhghín Ó’Caoláin called on the Taoiseach to guarantee no cuts in the minimum wage and he criticised the decision to reverse cuts for higher senior civil servants. Mr Ó’Caoláin suggested “the closer you are to the Minister the less you will suffer. But if you are an ordinary clerical worker within the civil service that you are therefore out of sight and out of mind.”

But Mr Cowen insisted the cuts were progressive and said “lower paid public servants have suffered less of a net loss proportionately than those on the higher grades”.

He said the Government “was obliged to take some necessary decisions on cuts in expenditure that included pay levels. We have no desire to go down that route again if we can have engagement on the other issues. There are still savings to be found and efficiencies that have been identified.” Labour leader Eamon Gilmore said “the game has changed” and they were in a “free for all”. The Taoiseach changed the game “when you sent the public service trade unions away from the bargaining table in your department the week before the budget”.

Mr Cowen replied: “I am aware people are unhappy that pay cuts were necessary, the reality is we have to move on.”

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times