Row over pay deal for public sector
Fine Gael and Fianna Fail in campaign war of words as unions look on
FINE Gael and Fianna Fail have gone to war over the cost of the next public sector pay deal.
With less than two weeks to go until election day, the two main parties launched attacks on each other over forthcoming talks with public sector unions.
Yesterday, Finance Minister Paschal Donohoe said Fianna Fail could “not be trusted” because it had budgeted only €1.2bn for a new pay deal and other expenditure rises. “It shows that Fianna Fail, even in their manifesto, cannot be trusted with the choices that are crucial to looking after our economy and looking after our society for the next five years,” he said.
The minister said Fine Gael had budgeted €2bn for public sector pay over the next five years.
FINE Gael and Fianna Fail have gone to war over the cost of the next public sector pay deal.
With two weeks to go until election day, the two main parties launched attacks on each other’s approach to the forthcoming talks with public sector unions.
At a campaign event yesterday morning, Finance Minister Paschal Donohoe said Fianna Fail could “not be trusted” because it had budgeted at most €1.2bn for a new pay agreement.
Mr Donohoe said the figure meant public sector workers would receive only a 1.2pc pay increase over the next five years if Fianna Fail is in power.
“It shows that Fianna Fail, even in their manifesto, cannot be trusted with the choices that are crucial to looking after our economy and looking after our society for the next five years,” he said.
The minister said Fine Gael had budgeted €2bn for public sector pay over the next five years, which would result in 2.5pc pay increases.
Fianna Fail’s finance spokesperson, Michael McGrath, hit back at his counterpart, saying Fine Gael is “getting increasingly desperate as the days go on”.
Mr McGrath also raised serious concerns about Mr Donohoe opening negotiations with public sector unions at €2bn before anyone had gone near a negotiating table.
“Paschal Donohoe and the Government have shown over the last number of years they are not very good at negotiating and now they’re telling the heads of the public sector unions that Fine Gael’s opening offer is €2bn in terms of the next public sector pay bill,” he said.
“We have a buffer in our plans of €1.2bn and the negotiations
MICHAEL McGRATH: Hit back will take place later this year on a new public sector pay deal and any public sector deal will involve increased efficiencies and savings in public expenditure in certain areas.”
At a press conference, Mr Donohoe said his figures for public sector pay were an “assumption” of the cost associated with a new deal and he insisted he was opening negotiations with unions.
Fianna Fail has committed to upholding the current public sector pay deal and said it would negotiate a new agreement if elected to government.
The party also said it would include retired public servants in the next round of pay talks which will commence later this year.
The current public sector pay deal cost €877m and saw workers receive pay increases ranging from 6.2 to 7.4pc over three years.
Mr McGrath accused Fine Gael of “plucking figures out of the air” for its election manifesto costings.
He also said the “elephant in the room was Fine Gael’s “total and utter neglect” of new measures on affordable housing.
“We are seeing nothing whatsoever in relation to affordable housing by way of a financial commitment,” Mr McGrath said.
“So their message to people who are looking to buy their first home in the coming years is that it is not happening under Fine Gael.”
His comments came after Fine Gael published a mockup of Fianna Fail’s election manifesto including the slogan ‘no costs, no credibility’.
The document criticised Fianna Fail’s plan for an SSIAstyle savings scheme for firsttime buyers which would see the State offer mortgage savers €1 for every €3 they save. Fine Gael said the plan would stall the supply of housing.
Meanwhile, the Labour Party launched its economic policies yesterday. The party’s finance spokesperson, Joan Burton, said that in Government it would not cut taxes for ordinary workers.
However, she said Labour would raise €400m in tax revenue by doubling the bank levy, increasing carbon taxes and hiking stamp duty on commercial property.
The party would also increase all social welfare payments by €5 per week every year while in office. Ms Burton said Labour would also provide €2bn for capital expenditure projects.