FINE GAEL leader Enda Kenny has called for the suspension of the national pay agreement next year to protect jobs.
In his keynote address to the Fine Gael national conference in Wexford on Saturday night, he called on the Government and the unions to suspend the deal.
"The country cannot afford the national pay deal. It is as simple as that. This deal must be suspended for 12 months and reviewed after that. It was negotiated in a different context with different expectations," he said.
"I am calling on Government and public service unions to implement a complete pay freeze for 12 months.
"I am calling on private-sector employers and their staff to review the terms of the wage agreement and ensure that no pay increases are at the expense of jobs. Wage restraint in the short term is preferable to job losses in the long term," said Mr Kenny.
He said that if the Irish people wanted to be masters of their own destiny, spending would have to be controlled to ensure that the country regained competitiveness. "Let's be clear on this: if we manage our finances prudently, there should be no need for damaging tax increases that undermine our future growth.
"The money saved by this initiative should be invested directly in key infrastructures like school buildings and public transport, and in retraining and upskilling our workforce. The time to start fixing the economic mess created by Fianna Fáil and Brian Cowen, is now. We simply must get the country back on track," said the Fine Gael leader.
He also said that Fine Gael would not be paralysed by the current banking crisis. "We would re-capitalise banks. Now. It's too late to give a transfusion when the patient is already dead. Too many jobs in small businesses all over this country are threatened by the lack of access to credit.
"My fear is that bad banks and delinquent developers are having too much say in guiding Government policy in this area. The recipe drawn up by Government appears to rely on international venture capitalists. What interest do they have in the long term viability of our economy? None.
"So why are we inviting venture capitalists to do a job that we can handle ourselves? The Government should take preference shares in Irish banks so the taxpayer gets a dividend from the investment, not foreign investors. "Once that's done, they must be told that neither they, nor their regulators, will walk away unscathed from this. Our nation has been damaged by their reckless behaviour. They must be held accountable. Under Fine Gael, they will be held accountable," he said.
Mr Kenny also stressed the need for Ireland to regain its place as an influential member of the European Union and he said it was vitally important that the Lisbon Treaty was ratified.
"We stand amid catastrophe. But we stand on the verge of massive change.
"Ten years from now, we will once again be a beacon of light and of pride. To get there, Ireland must be restored as a central and influential member of the European Union.
"I am committed to playing my part in ensuring that the current uncertainties about Ireland's relationship with Europe is ended," Mr Kenny said.
