POLITICAL RESPONSE:THE GOVERNMENT will conduct soundings with the social partners over the next few weeks to see if the national pay talks can be revived at the end of the month.
Despite the collapse of the talks in the early hours of Saturday morning, Government sources were taking comfort over the weekend from the fact that the breakdown was not accompanied by acrimony.
"There was no blame game afterwards and people now have 3½ weeks to reflect on the position and consider whether they can come back and start talking again," said the source.
He also pointed out that while unions in the private sector had indicated that they will start lodging pay claims with individual employers, these claims will take months to process.
The Taoiseach Brian Cowen met the pay talks participants before they adjourned and made it clear that he was willing to reconvene the process at the end of the month if the mood was right.
"While the parties agreed that it was not possible to reach agreement on new pay terms, the Taoiseach thanked them for the efforts which they had made," said a Government statement.
"Mr Cowen indicated to the parties that he may wish to discuss with them at the end of August the arrangements which would operate in respect of pay and related matters in the period ahead," added the statement.
It also said that the various parties affirmed their commitment to the principle of the orderly conduct of industrial relations and the maintenance of industrial peace.
The institutions of social partnership, including the National Implementation Body, will remain in place and continue to operate, despite the failure to reach agreement.
Fine Gael finance spokesman Richard Bruton said the breakdown in the talks was disappointing but he said the Government had to take responsibility for what had gone wrong.
"What we are seeing is the latest thread of economic policy unravelling as a result of four years of soft option decision- making by Brian Cowen and the Department of Finance," he said.
He added it was disappointing but not surprising that the pay talks had not succeeded given that Irish inflation was considerably higher than in other European Union countries.
"It was always going to be difficult to secure a moderate pay deal in the absence of any anti-inflation strategy by the Government," said Mr Bruton.
He added that in the circumstances it was exceptionally difficult to see how an agreement could be reached and it remained to be seen whether the talks could be retrieved.
Labour spokesman on enterprise, trade and employment, Willie Penrose described the collapse of the talks as a very disappointing development.
"Coming to an agreement was never going to be easy, and it seems that the stipulation by the employers that there be a six- month pay freeze was among the sticking points.
"At a time when inflation continues to surge ahead, it should not come as a surprise that such a measure would be difficult for the unions to sell to their members," said Mr Penrose.
He acknowledged that the Taoiseach had indicated his wish to meet the social partners at the end of August to further discuss the situation.
"I believe that full advantage must be taken of this, and any other opportunities to make progress, that may arise."
