Cowen says there is no alternative to Croke Park deal

TAOISEACH BRIAN Cowen has said the Government has not contemplated any public sector pay arrangements other than the deal formulated…

TAOISEACH BRIAN Cowen has said the Government has not contemplated any public sector pay arrangements other than the deal formulated at Croke Park a fortnight ago.

Speaking in Roscrea, Co Tipperary, yesterday, Mr Cowen asked union representatives to reflect on the context in which the proposals had been drawn up.

The Taoiseach said the Government was committed to implementing the deal if it was passed by union members in their ballots.

Some union members have expressed strong concern about “uncertainty” in the deal, and have pointed to a clause in the agreement which says that its implementation is subject to there being no currently unforeseen budgetary deterioration.

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Mr Cowen said the Government supported the deal and had not contemplated any other arrangements.

“I would ask people to reflect on the fact that it provides income stability, it provides job security, it provides the means by which pay issues can be progressed on the basis of finding savings through different ways of working.”

Asked about a report in the Sunday Timesthat further pay cuts of 8 per cent could be introduced if the deal was not accepted, Mr Cowen said the situation was that the Croke Park agreement would be put to all members of the "various constituent trade unions" in the public sector. He said people should not assume the outcome of a democratic process.

Meanwhile, interviewed on RTÉ Radio's News at Oneyesterday, Minister for Enterprise, Trade and Innovation Batt O'Keeffe denied suggestions that, in the event of the Croke Park deal being rejected, public service staff could face further pay cuts.

“No, I don’t think so. I mean, what has been said is that we have negotiated this deal in good faith. The agreement is there to give stability over the next four years. It’s the best that could be negotiated at the time: no pay cuts, no mandatory redundancies, restoration when the economy could afford it,” Mr O’Keeffe said.

However, when asked a second time about the reports of further pay cuts, the Minister said: “This obviously will be a Government decision to have a look at what the outcome is, but we believe that there is good rationale within the union members themselves, and those who oppose it would want to be asking themselves the question: what can you put in place as against what has been agreed, given the difficulties that the economy is facing?”

He said the Government wanted a partnership agreement with the unions. “They realise that this economy needs to take three further billion out for next year’s budget. We’re prepared to take a billion out of capital spending. We will effect savings through the reduction in numbers, and we were hoping that through the flexibilities that could apply from this particular process that we could garner the balance of the money.”

Meanwhile, Minister for Health Mary Harney said she hoped all public service staff would think carefully when voting on the Croke Park agreement.

“We are living in very, very challenging times in Ireland. We’ve had to make major cutbacks in public spending and in public sector pay.

“We already know that later this year we hope to see growth return to the Irish economy, and that’s the greatest guarantee for more money for services in the future and greater prosperity and more employment.”

She added: “We know some people are very opposed to the deal, but I think the majority of public servants, if they think carefully, will realise that there is no alternative to the agreement that’s been reached between the Government and their union representatives.”

Mary Minihan

Mary Minihan

Mary Minihan is Features Editor of The Irish Times