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03/02/2009
Gov To Push Through Cuts Despite Talks Collapse
The latest economic recovery talks have sensationally collapsed early this morning, however, the Government will still push through its sweeping cuts.
The talks between government, unions and employers where underway to secure €2 billion worth of cuts from Ireland's public spending, but workers unions at the talks rejected attempts by the Government to slash the public service payroll bill.
In a statement issued earlier, Taoiseach Brian Cowen said that he regretted it was not possible for the trade unions to agree to proposals but he would still "take the necessary decisions in respect of the fiscal adjustments".
The talks effectively broke down over the terms of a graduated pension levy which the Government had sought to introduce as part of a package of measures aimed at generating savings of €2 billion this year.
However Deputy Prime Minister Mary Coughlan said the collapse of the talks did not represent the end of social partnership.
According to reports this morning, the plans included increases to the pension contributions by public sector workers in the mid salary ranges of €40,000 to €60,000. The proposals meant staff would have to pay between 6.9% and 7.9% more in pension contributions, meaning deductions of between €2,250 for staff on €40,000 and €4,750 for those on €60,000.
Despite the union's walk out at the talks, the Government has indicated that the plans are to continue, and will be pushing through a bill on the proposals soon.
(DW/JM)
The talks between government, unions and employers where underway to secure €2 billion worth of cuts from Ireland's public spending, but workers unions at the talks rejected attempts by the Government to slash the public service payroll bill.
In a statement issued earlier, Taoiseach Brian Cowen said that he regretted it was not possible for the trade unions to agree to proposals but he would still "take the necessary decisions in respect of the fiscal adjustments".
The talks effectively broke down over the terms of a graduated pension levy which the Government had sought to introduce as part of a package of measures aimed at generating savings of €2 billion this year.
However Deputy Prime Minister Mary Coughlan said the collapse of the talks did not represent the end of social partnership.
According to reports this morning, the plans included increases to the pension contributions by public sector workers in the mid salary ranges of €40,000 to €60,000. The proposals meant staff would have to pay between 6.9% and 7.9% more in pension contributions, meaning deductions of between €2,250 for staff on €40,000 and €4,750 for those on €60,000.
Despite the union's walk out at the talks, the Government has indicated that the plans are to continue, and will be pushing through a bill on the proposals soon.
(DW/JM)
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