Government Challenges Unions To Find "Better Ideas"

The government has challenged the state's unions to find "better ideas" for dealing with the looming cuts that need to be made in December's budget.

Minister of State for Science Conor Lenihan said yesterday that the government hoped to achieve €1.3 billion in savings in public-sector pay through a combination of reform, pay cuts and pension changes.

But following criticism and a threat of major strikes from the unions, Mr Lenihan said if the trade unions had “better ideas” about how to save money, the government was open to hearing such views.

Speaking on behalf of the government, Minister of State for Science Conor Lenihan outlined where the government would seek to achieve the cost reductions.

“Clearly we’ll look at reform, cuts and indeed of course naturally enough, some effort to mitigate the extent of the public sector pension bill,” he said.

However, Congress President Jack O'Connor accused the government of twisting figures, saying today it was important to alert the public to the fact 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. We 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," he said.

The union chief said the government had "slickly shifted ground" so that the €4 billion adjustment became a €4 billion cut in public expenditure.

"The effect is to place the whole burden on working people and on those who depend on public services, whilst the wealthy are insulated from making any additional contribution whatsoever."

(DW/KMcA)