Taoiseach Brian Cowen has insisted the Government is still looking to secure savings “of the order of €1.3 billion” in the public sector pay bill as part of its ongoing talks with trade unions.
“That remains our position, and we wish to discuss with the trade unions on that basis,” he told the Dáil today. “Those discussions are not complete” Mr Cowen said, adding that proposals must still be discussed and developed.
“However, I made clear what the Government’s position is…and we reserve our position until we see if we can find an agreement,” he added.
Union sources have suggested that a scheme of unpaid leave of between 10 to 14 days could provide the basis for an agreement, although they accept the savings from this will be somewhat less than the €1.3 billion target set out by the Government.
Mr Cowen also said today the reduction to the public service pay bill must be both substantial and permanent. He said the Government told unions the proposals “did not, in their present form, provide a basis for the Government to confirm that it would not consider other options to effect the necessary savings”.
Later, the president of the Irish Congress of Trade Unions (Ictu) Jack O’Connor said that Government officials maintain that the proposed unpaid leave arrangement for public servants would not generate sufficient revenue.
He said efforts were being made today to look at other measures that could be taken to enable the formulation of a proposal that would be consistent with budgetary requirements.
He said that there had been a sustained campaign of opposition to prevent the Congress alternative proposal to avoid pay cuts from being implemented.
Mr O’Connor also warned that the proposed strike action could be reinstated in the event of pay cuts being implemented by the Government.
“The decision of the congress public services committee yesterday was to defer the strike, not suspend it and not cancel it” he said.
Fine Gael leader Enda Kenny said it seemed as if the Government had abdicated its responsibility to sort out the economic mess into which it had led the State.
“It is not possible to get permanent savings by having a further 12 days’ holidays,” he added. “It is not possible to give the same level of service with five per cent less man-hours.”
Union leaders and Government officials resumed talks this morning to work on a modified plan to cut the pay bill that involves a 12-day unpaid leave arrangement for public sector workers.
The Government agreed elements of the plan yesterday in order to secure a deal with the public service unions. This led to the suspension of tomorrow's planned one-day strike by public servants.
The draft deal involves two stages, a 12-day unpaid leave scheme to produce savings next year and an overall transformation programme for the public service from 2011.
Responding to Labour Party leader Eamon Gilmore during Leaders' Questions, Mr Cowen insisted that "discussions are continuing" on how to make those savings.
He said that if an "agreed way forward" was to be found, it would have to be before the Budget on December 9th. Minister for Finance Brian Lenihan would have to have available to him the figures for the public service pay bill next year on that day.
“In the meantime, efforts are being made to see if there is an agreed way forward and how to do that," Mr Cowen said.
Mr Gilmore said the Government had a "muddled strategy - if indeed it’s a strategy at all”. He said that if there was an agreement with the unions, the Government still didn't know if it would be confirmed in a subsequent ballot. It did not appear to have a position "on what happens if there isn’t an agreement".
“Those savings have to be made because the Government does not have the money to pay the public sector pay bill as it is presently constituted.”