Two Day Debate Begins On Spending Cuts

The Government's controversial spending cuts are to be debated in the Daíl over the next two days.

Public service unions walked out of talks yesterday after being presented with plans to up their workers' pension contributions.

The plans were put forward by the Government as part of an attempt to raise €2 billion this year to fill their budgetary shortfall.

However, the Government are determined to push ahead with the plan, which will cost an average public service worker 7.5% of their gross income.

The Fine Gael Leader Enda Kenny offered to temporarily suspend all Dáil business to allow the matter to be debated.

He said: "The collapse of the talks leaves the country with an imminent financial crisis. We need to find €2bn in savings on spending so that the international capital markets will gain some sense of confidence that Ireland Inc. is getting on top of the financial mess created by Fianna Fail."

Yesterday, Mr Cowen expressed regret it was not possible for the unions to agree the proposals to the plans.

Tánaiste Mary Coughlan said she said she did not think that the collapse of the talks heralded the end of social partnership.

Ms Coughlan said that it would be inappropriate for her to apportion blame for the breakdown of the talks.

She said that: "people were not in a position to go as far as anticipated or expected".

The Daíl debate on the matter is expected to last two days, and it is believed the Government is in for some tough criticism from the opposition.

(DW/BMcC)