THE GOVERNMENT is willing to put back the deadline to reach agreement on achieving up to €2 billion in public sector cuts until next Tuesday, if necessary.
Taoiseach Brian Cowen had set January 31st as the deadline for agreeing the cuts. However, last night the Government confirmed that date may be extended if there is a belief that they are close to consensus with the social partners.
The Government is to circulate a framework document to the social partners today setting out headings and key areas for negotiations. Government sources said if progress is made on achieving a consensus by the weekend then the deadline of the end of the month could be extended.
“If it slipped for a day or two, why would it be stopped if it were possible?” said the Government spokesman. “The Taoiseach has consistently said he is looking for consensus from all the social partners. It’s a much better place to be.”
The spokesman also maintained that neither Mr Cowen nor the Government had ever set this morning as a final deadline, saying others may have reached that conclusion on the basis that the last meeting of Cabinet in January takes place today.
The position adopted by Mr Cowen won support from the Fianna Fáil parliamentary party last night, at the end of a five-hour meeting.
Government Chief Whip Pat Carey said: “The vast majority of people would be anxious that as far as possible, a decision could be made by the end of January which does not leave an awful lot of time. If we are moving towards consensus it would be foolish not to avail of the extra day or two to allow that to develop.”
The parliamentary party meeting was attended by 94 TDs and Senators. There were a total of 45 speakers.
Mr Cowen, in his opening address, said that €15 billion in savings will be needed in the economy over the next five years.“There is a recognition that we are in very difficult times,” Mr Carey said afterwards.
He said the consensus at the meeting was “that in the meantime those who can bear the burden must bear it most and those who are most vulnerable should be protected”.
Several TDs and Senators who spoke at the meeting urged Mr Cowen to make a “state of the nation” address directly to the public. Mr Carey said Mr Cowen will address the Dáil tomorrow and Thursday during the debate on the economy. “I expect that he will lead the debate and outline his thinking in relation to it.”
Union leaders pushed for concrete evidence that all parts of society are contributing in an equitable way.
However, union sources described the framework document headings presented by the Department of Finance during the negotiations as “too vague” and the language as a “blancmange”.
Among measures the Cabinet may discuss today are a possible scrapping of the early childcare allowance for children under 5½ years, worth €1,400 annually.
Following the parliamentary party meeting, Mr Carey also confirmed that cuts in salaries for TDs and senators will form part of the overall package that will be announced in the next week.
“That issue was raised and obviously the whole issue of public service pay included members of the Oireachtas. Clearly that will form part of the decision and menu that will be presented for decision in the next few days,” he said.
Sources in Government departments said last night that differences on whether taxes should be increased this year have caused division between the Government and the unions.
According to the sources, Minister for Finance Brian Lenihan believes such increases cannot be accommodated until 2010, as the economy cannot bear any further increases in taxes this year.