Cowen scoffs at claim Lenihan ‘sank’ pay talks

TENSIONS at the top of Government did not wreck the chance for a landmark pay deal in the public sector, Brian Cowen said yesterday.

The Taoiseach dismissed claims from Labour that Finance Minister Brian Lenihan had “sunk” the deal in a bid to wrestle power from him.

During stormy exchanges at Leader’s Questions, Eamon Gilmore said the Taoiseach had caved in to pressure from Mr Lenihan to scupper a public pay deal.

“At best, it is incompetent that the Government could not conclude that agreement and at worst it is devious. The bottom line is not what the Taoiseach said but rather that he has a Minister for Finance who is now so anxious to get his hands on the Taoiseach’s job that he was prepared to sink this,” the Labour leader told the Dáil.

Mr Cowen insisted he had to shut down negotiations on a deal because the money that would have been saved from the public sector pay bill via the proposed changes in working practices and 12 unpaid leave days did not add up to the required €1.3bn in savings needed.

The Taoiseach accused the Labour leader of personalising politics and dismissed his version of events.

“I completely reject that view. It is unfortunate that it is usual practice to introduce personalities into the situation. In any discussions I have had with the ICTU on these matters the Minister for Finance accompanied me to all those meetings and full and frank discussions took place between all the parties concerned,” he told TDs.

However, Mr Gilmore claimed the Finance Minister had orchestrated the collapse of the talks by sending his supporters out to rubbish it while talks continued.

“This was stupid and short-sighted because the fact that an opportunity to achieve serious reform in the public services has now been thrown away.

“It seems to me that the Government and the unions were within touching distance of concluding an agreement which would not only have provided the savings but would have delivered public service reform, a better deal for the public in terms of delivery of services and industrial peace in the time ahead,” Mr Gilmore said.

The Taoiseach said that the negotiations had produced some positive results.

He said the Government now had a clearer idea of union thinking regarding reform and that could be returned to next year.

Mr Gilmore said that opportunity had now been missed and major changes in the way the public services operated were as far away as ever.