Labour has claimed the Government has made a secret deal with the unions after Senator Joe O'Toole yesterday proposed a welcome for agreements on issues still officially under negotiation.
As the social partners prepared for another round of discussions on pay and tax today, Senator O'Toole yesterday circulated a Seanad motion warmly welcoming their successful conclusion. The motion also welcomes the agreement of the Minister for Finance to fast-forward benchmarking awards, although Mr McCreevy has not so far said he will do so.
Senator O'Toole last night rejected Labour claims this proved the deal was done. His motion, he said, had to be submitted by yesterday if it was to be debated on Budget day. "If he delivers, I'll be the first to acknowledge it by proposing this motion," he said. "If he doesn't deliver, I'll withdraw the motion and vilify him instead."
However, last night Labour's finance spokesman, Mr Derek McDowell, claimed Mr O'Toole's motion indicated there was a "done deal" and that this would make a mockery of Budget day. "If Joe O'Toole is so sure about what's in next week's Budget, one wonders what this weekend's social partnership discussions are about."
Mr O'Toole, who is also incoming president of the Irish Congress of Trade Unions, said last night he had recently promised Mr McCreevy, with whom he is friendly, that if he delivered on pay and tax and fast-forwarded benchmarking payments, he would use Private Members' Time in the Seanad to welcome the Budget. His motion was submitted on the basis of an optimistic scenario, he said. The motion "acknowledges in particular the fact that the Minister for Finance has, following intensive discussions and negotiations with the social partners including the ICTU, delivered, as promised, a pay and taxation deal which compensates for the erosion of value caused by inflation and which has also delivered the first moiety of the PPF taxation commitments."
The motion also "notes that the agreement of the Minister to the fast-forwarding of the implementation of the benchmarking outcomes has been of particular importance to public sector employees, including teachers".
Finally, it "recognises that the flexibility of the PPF review process in proposing these adjustments will imbue increased confidence among trade unions and the general public in the partnership approach so crucial to economic development and stability".