The president of Siptu and the Irish Congress of Trade Unions has accused the Government of “shifting ground” to create an impression that a planned €4 billion adjustment in the public finances should be a cut in public expenditure.
Jack O’Connor made the remarks as Ictu prepares to re-engage with the Government and other social partners on what he said were “the possibilities of an agreed approach to the present crisis”.
Mr O’Connor said it was important “to alert the public to the fact that the Government’s fiscal plan, which was approved by the European Commission, did not envisage a €4 billion cut in public expenditure in 2010.
“It envisaged an adjustment in the deficit of €4 billion, which is an entirely different thing.
“This was to be achieved by a €1.75 billion increase in taxation, a €1.5 billion reduction in current expenditure and a €0.75 billion reduction in capital expenditure.”
Mr O’Connor said the unions could not agree with this because, “in the absence of parallel means to stimulate economic activity, it would serve only to exacerbate the downward spiral”.
“However the Government has slickly shifted ground so that the €4 billion adjustment has now become a €4 billion cut in public expenditure.
“The effect is to place the whole burden due for 2010 on working people and on those who depend on public services, whilst the wealthy are insulated from making any additional contribution whatsoever.”
Public sector unions will meet Department of Finance officials on Wednesday.
The Government has told union leaders it wants to reduce the public sector pay bill next year by 6.85 per cent, amounting to €1.3 billion. Unions are considering plans for a national public sector strike on November 24th.
Among the reforms likely to be considered are greater efficiencies and flexibilities, improved use of technology, more scope for redeploying staff and the removal of bureaucracy.
Taoiseach Brian Cowen told The Irish Timesthis weekend the Government would set out at the talks its own analysis of what is required for recovery, including the importance of restoring stability to the public finances.
He said achieving a €4 billion adjustment in 2010, which was announced last April, was critical.
“Achieving that adjustment will require difficult decisions to be taken and this would include a reduction of the order of magnitude of €1.3 billion in the cost of the public service pay bill. It is clear that adjustments of this scale will be difficult.
“However, the Government is anxious to work with the public service unions to identify measures including the restructuring of the delivery of public services which would enable costs to be reduced without reducing pay rates,” he said.
Mr Cowen said that the Government understood the concerns of public service workers. “In particular we understand the concern that the burden of adjustment should not fall disproportionately or unfairly on public servants,” he said.