REAL LEADERSHIP is now required from Taoiseach Brian Cowen in order to rescue the pay talks, according to Fine Gael spokesman on enterprise, trade and employment Leo Varadkar.
He said the collapse of the talks, coming on top of other economic setbacks, had served to dispel the myth of Fianna Fáil's competence on the economy once and for all.
"Instead of continuing his favoured hit-and-hope approach to the economy, Brian Cowen should start to think and act like a Taoiseach. He should ensure that the interests of ordinary workers, consumers and the users of public services are put first in any deal between Government, unions and employers," said Mr Varadkar.
Mr Varadkar said the Taoiseach should propose that the low-paid be exempt from any pay pause. Mr Cowen should also offer to introduce measures in the budget to alleviate fuel poverty and help people with mortgage repayments.
"He must also ensure that any deal with the social partners should arrest the decline in Ireland's competitiveness. This should include a commitment from the unions to end their opposition to opening up bus services, electricity and gas supply to real competition. He should also offer business the promise of a freeze in government and local authority charges and a genuine war on regulatory red tape," said Mr Varadkar.
He added that the collapse of the pay talks had further dispelled the myth of Fianna Fáil's competence on the economy. That reputation had been founded on the fact that Fianna Fáil had brokered deals between unions and employers when they could be paid for through the proceeds of a debt-fuelled boom.
"Now that the Government is facing a tougher economic climate its entire economic policy is unravelling with unemployment rising, house prices falling, business and consumer confidence plummeting and nothing on offer from the Government to tackle any of the problems facing the economy.
"Despite being one of the principal agents in making a pay deal . . . difficult to secure, Brian Cowen still has plenty of cards up his sleeve. If he plays them wisely, a deal can be secured that can benefit all sectors," said Mr Varadkar.
