Tánaiste and Minister for Enterprise, Trade and Unemployment Mary Coughlan today denied suggestions that the Government is involved in a smear campaign against public servants but once again refused to rule out pay cuts in the next budget.
Deputising for Taoiseach Brian Cowen at Leader's Questions in the Dáil this morning, Ms Coughlan said the Government was not able to give undertakings at this stage that further pay cuts will not occur.
"No one is in a position to say what adjustments are needed in next year's budget. However, we are clearly of the view that public sector reform is for the benefit of the citizens of this country and equally that rising (sic) from public sector reform we can clearly find savings which in themselves can be taken into consideration in the context of the adjustments we may make," she said.
The Tánaiste's comments come after a special delegate conference yesterday during which members of the Civil Public and Services Union (CPSU), which represents lower-paid civil servants, decided to escalate industrial action.
Ms Coughlan defended the Government's actions in reversing the decision on the level of pay cuts originally earmarked for some of the most highly paid civil servants.
"When we did apply pay reductions in this country arising from the budget it was done in a progressive way as with all other adjustments in public pay which meant that the lower paid public servants have suffered less of the net loss proportionate to those in the higher public service grades."
Ms Coughlan also refuted allegations that the Government was singling out public servants to take the brunt of budgetary adjustments.
"We have always had the highest regard for our public servants and equally we want to make sure that the public servants have sustainable employment and the wherewithal in this economy to ensure that happens.
“That has not been the circumstances in the economic change that has taken place in this country. We have not had a sustainable position in regard to our public finances and it is on that basis that we have had to make difficult decisions," she said.
Tens of thousands of civil and public servants, represented by a number of unions, are currently engaged in industrial action. However, no significant disruptions have been reported as yet.
