Talks Resume On Public Sector Pay

Government officials and trade union leaders are to resume talks the plan to save €1.3bn in the public sector pay bill in December's budget.

Speaking on the matter, Taoiseach Brian Cowen said yesterday cutting the public service pay bill was not enough, adding that fundamental reform of the public sector was urgently required.

He also said he was willing look at the numbers employed and the "whole system of allowances", indicating adjustments to the current welfare provisions.

The comments come despite a mass protest across the country on Friday against the expected cut in pay in the public sector.

During the Dublin leg of the protest, David Begg, Congress General Secretary said the protest was to try and persuade the Government of the "folly of introducing a budget that will be so deflationary it could send the Irish economy into a prolonged coma".

Mr Begg said: "This has happened before in the modern era. The Japanese experienced just such a slump in the 1990s when they made the very same mistake our Government seems intent on repeating. And every effort they made later to try and reflate their economy failed. For good reason it is known as Japan's Lost Decade."

However, Mr Cowen's government seemingly remains adament that cuts to pay and welfare is the fastest way to provide a shock to the economy and bring Ireland back to growth.

Mr Cowen said the targeted €1.3bn would constitute a significant amount of the €4bn reductions being sought in State spending for 2010.

Opposition party, Fine Gael, have called Mr Cowen’s latest comments on public sector reform, "laughable".

Fine Gael Deputy Leader & Finance Spokesman Richard Bruton said The Fianna Fail Government was directly responsible for most of the dysfunctional aspects of the public sector.

He said that to hear the Taoiseach’s "eleventh hour call for fundamental reform" only weeks before the Budget, was a cause for "incredulity".

"Brian Cowen promised public sector reform when he became Taoiseach. Since then, there has been zero progress. As far as this Government’s ability to achieve reform is concerned, the horse bolted long ago. The only way to achieve genuine reform now is under a Fine Gael Government," Mr Bruton said.

(DW/BMcC)