TAOISEACH BRIAN Cowen has insisted that the Government will not try to change the terms of the pay deal for public servants without discussions under the social partnership process.
Asked yesterday if the Government intended to seek a public-sector pay freeze, Mr Cowen said there was a range of issues facing the economy, and not just that one. "I don't like to have it discussed in isolation from others," he said during a visit to London.
Tánaiste Mary Coughlan told the Dáil yesterday the pay deal was not up for negotiation. However, she said there was interaction between all members of the Government and the social partners "most particularly in the context of the current economic difficulties". "On the social partners and the specific issue of the national pay deal, it is not up for negotiations", she said.
However, Green Party chairman and finance spokesman Senator Dan Boyle yesterday repeated his view that consideration should be given to renegotiating the agreement to protect jobs. He said in light of the deteriorating economic situation, an option to review the deal had to be kept open.
Fine Gael leader Enda Kenny maintained there was no clarity about the Coalition's approach. "The Government is all over the place on this," he told the Dáil.
There has been strong speculation in recent days about the Government's position regarding the payment of the 3.5 per cent increase due to more than 300,000 staff in the public service next September. On Wednesday morning, the Minister for Finance appeared to hint that the increase would be deferred.
Asked about the pay deal on RTÉ's Morning Ireland, he said: "The Government will give leadership on this early in the new year. We can't wait forever on this. Nothing can be ruled out."
Mr Cowen issued a statement late on Wednesday saying that the issue of a review had not arisen in talks held earlier this week with unions and employers.
Jack O'Connor, leader of Siptu, the country's largest union, said yesterday it did not see how not complying with the deal would contribute to the resolution of the country's economic problems. He said that it would exacerbate the difficulties.
"If there are suggestions that the pay agreement is not going to be honoured in the way they envisaged, that does not do anything to contribute to consumer confidence," he said.