Exceeding 9.5% borrowing limit 'key to new deal'

GENERAL SECRETARY of the Irish Congress of Trade Unions (Ictu) David Begg has said the Government’s indication that it is prepared…

GENERAL SECRETARY of the Irish Congress of Trade Unions (Ictu) David Begg has said the Government’s indication that it is prepared to relax its previous stance on limiting borrowing to 9.5 per cent of GDP this year could be the “key to the solution” of achieving a new social partnership deal.

Mr Begg said last night the trade union movement had been concerned that by sticking to the 9.5 per cent borrowing limit the Government ran the risk of “crashing the economy”.

He said the signal given by the Taoiseach that the Government may borrow more than originally planned this year potentially represented significant movement and the unions may “be able to get something more liveable with”.

Ictu yesterday accepted the Government’s invitation to go back into talks on a new agreement with the other social partners. It deferred the controversial day of strike action, which it had scheduled for next Monday.

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Schools are to open as normal on Monday after three teacher unions announced they would defer planned strike action. Dublin’s post-primary branch of the TUI passed a vote of no confidence calling for the resignation of Mr Begg. The Tralee IT branch of the TUI has proposed a motion for the TUI congress to join with other trade unions to take strike action.

The employers’ group Ibec yesterday formally accepted the Government’s invitation to talks on a new agreement. It welcomed the decision by Ictu to call off the day of strike action.

Ibec director general Turlough O’Sullivan said: “It is vital that we urgently take the steps necessary to address the economic crisis. Ibec looks forward to meeting with Government and unions, and putting in place arrangements that reflect the economic realities we now face. It is important that we all work together to restore Ireland’s international reputation.”

The social partners are expected to attend a briefing at the National Economic and Social Council today in a move which will effectively mark the beginning of the new talks process.

Mr Begg said yesterday that if the 10-point plan for economic recovery drawn up by Ictu was central to the new talks that “there was a reasonable chance of achieving progress”.

Siptu told members yesterday that the priority in talks on a new agreement would be protecting jobs, even if this meant extending the Government’s current time-frame for bringing its level of borrowing back into line with the 3 per cent set out in EU rules.

It also said that unions would be seeking a two-year moratorium on house repossessions and the use of mediation rather than the courts to resolve repayments problems.

Siptu also said that unions would be seeking “major tax reforms, including the closing off of all tax shelters, protection for those dependent on social welfare payments and protection for occupational pension schemes threatened with insolvency”.

Trade unions are also expected to seek an investment of €1 billion in a new employment-protection scheme and an amelioration of the controversial pension levy for lower- and middle-income groups in the in the public sector. Lower-paid staff in the Civil Service are to place pickets at all Government offices at lunchtime today in protest at the pension levy.

The dispute organised by the Civil Public and Services Union (CPSU) will affect all Government departments and related agencies such as Social Welfare, Revenue, courts, Garda stations and passport offices. The CPSU will consider escalating its campaign at its annual conference next week.

A protest by Siptu taxi drivers will take place at Dublin airport on Monday. The drivers will strike between 7am and 11am. The strike was originally to take place next Wednesday but was brought forward last night. Drivers are campaigning against the method of issuing licences, a lack of an appeals process against decisions of the Taxi Regulator and health and safety problems arising from double jobbing.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent