Gilmore adamant direct cuts in public sector pay not the answer
Monday November 16 2009
LABOUR leader Eamon Gilmore is still opposing direct cuts in public sector wages and child benefit in the run up to the Budget.
It came as Taoiseach Brian Cowen warned him and Fine Gael leader Enda Kenny, "You can't have it both ways".
Mr Cowen is attempting to increase the pressure on Labour and Fine Gael to spell out their alternative plans for €4bn in cuts during the pre-Budget debate in the Dail this week.
But Mr Gilmore yesterday continued to stick to the line that his party wanted to reduce the €20bn public sector wage bill through changes in overtime, premium payments and changed work practices -- rather than direct wage cuts.
"If you try to do it by unilaterally imposed cuts that are not negotiated with people, all you will end up with is industrial action, strife and conflict which is going to do even more damage to the country's reputation," he said.
Mr Gilmore also ruled out cutting or taxing child benefit payments. But he went on to outline other parts of his party's cutbacks plan: a €750m cut in capital spending, a €1bn cut in tax reliefs for landlords and other groups, a third tax rate on individual incomes of over €100,000 and a carbon tax.
Debate
He told RTE's 'This Week' that these measures were necessary because "Fianna Fail has had the country's credit card for the past number of years and the bill has now come in for that credit card".
But Mr Cowen called on Mr Gilmore and Mr Kenny to outline their proposals in the pre-Budget debate.
"I want to see a real debate, not the debate we have been having up to now of the finance spokesman saying 'Yes, you are not cutting enough' and every other spokesman saying 'You are not spending enough'. You can't have it both ways," he said.
But Fine Gael finance spokesman Richard Bruton said his party had never been found wanting in setting out its budgetary strategy.
"Don't forget that last year we were rubbished by the Government when we said (public sector) pay cuts were necessary in our pre-Budget submission," he said. Mr Bruton said Mr Cowen's strategy of raising €6bn in extra taxes instead of cutting spending had been a "dismal failure", as had his plan to call for public sector reform "at the 11th hour".
"It's a bit rich for the Taoiseach at this stage to be talking like this -- he's had his hand on the tiller for the past six years," he said.
- Michael Brennan Political Correspondent
Irish Independent
