Fine Gael gave a cautious welcome to this morning's agreement in the social partnership pay talks, with senior party members warning that much more is needed if the economy is to recover.
Fine Gael deputy leader and finance spokesman Richard Bruton said he is giving “one small cheer” for thbut added that much more was needed to generate momentum for economic reform.
Speaking to reporters today at the opening of the Fine Gael parliamentary party’s two-day strategy conference in Co Clare, Mr Bruton said: “This pay-deal is a very modest element of a reform package that needs to be delivered. We have always said that social partnership should be at the core of reform and instead we’ve seen time and again social partnership delay necessary reform such as competition on the bus-services, long-promised.
Party leader Enda Kenny said: “The fact of the matter is that the problems affecting the Irish economy are far broader than the pay-deal with the public service. A deal is better than none but, what we would like to see in Fine Gael, is the programme for recovery by the Government to deal with the problems of the Irish economy."
"We have no indication of any plan from Government to deal with competitiveness, with keeping down costs, with increasing exports, increasing services, for which our people pay, so the pay deal in that sense is welcome but it’s only a very small part of what needs to be done in respect of the Irish economy,” Mr Kenny said.
According to the agreement, workers would be awarded a 6 per cent pay rise over 21 months, in tranches of 3.5 per cent and 2.5 per cent, with a final 1/2 per cent at the end for the lower paid.
All private sector workers will have a three-month pay pause. They will then receive a 3.5 per cent increase over six months, and a further 2.5 per cent for the following year.
