The general secretary of the Public Service Executive Union today confirmed the Government made no mention of the International Monetary Fund (IMF) during a briefing with trade unions.
The Taoiseach, on a trade mission to Japan, was asked about comments made by Dan Murphy, who had warned the State's borrowing figures were unsustainable and, if not curtailed, could possibly lead to the IMF ordering mass dismissals of public sector workers.
Speaking this afternoon, Mr Murphy said: “The Government made no reference whatsoever to the IMF, it was simply that I concluded myself, from looking at the figures . . . that a possibility, albeit a remote one, was that if no action was taken, that type of situation could arise.”
Mr Murphy said he drew this conclusion “from looking at the figures and trying to convey the seriousness of the situation to my own members”.
“At no stage did the Government make any reference to the IMF. I want to make that absolutely clear.” Mr Murphy, speaking on RTÉ, added no one from his side of the table referred to the IMF.
The union official said there was a “mixed” reaction to his circular outlining the dangers - “some people understanding that the situation is very difficult; other people having difficulties with coping with the situation that’s there”.
He said another part of his circular made it clear that the union was “utterly opposed to pay cuts,” with “no circumstances” under which such cuts would be agreed to. Mr Murphy said that if Government took unilateral action on the issue, the union would have to resist it “with strike action, if necessary”.
However, Mr Murphy said he did not know the precise arrangements that would come out of talks with Government and would not speculate on them.
Earlier today, Brian Cowen said he made no mention of the IMF when responding to comments from the trade union official this morning.
Mr Cowen said Mr Murphy's comments are “based on the evidence . . . provided by Government in our discussions with trade unions and the trade union movement as with other social partners must be given the opportunity and we expect to have to hand imminently some ideas and responses from them on foot of those briefings”.
He also said that the comments highlighted the need to "get real" about meeting the economic challenge.
