Trade unions gear up for protests

TRADE unions have organised meetings this week to plot a schedule of protests against the Government’s economic revival strategy.

Their gatherings are expected to coincide with tomorrow’s announcement by Taoiseach Brian Cowen and Finance Minister Brian Lenihan of a revised €7 billion state investment to shore up the country’s two main banks.

However, Environment Minister John Gormley has indicated a showdown is looming over the Government’s reluctance to cut bonuses to AIB and Bank of Ireland executives who could claim entitlements under their contracts.

Meanwhile, Fine Gael leader Enda Kenny has requested an urgent meeting with the Taoiseach and the Financial Regulator to try pin down the full extent of the country’s financial problems.

“Before the Government pours billions of euro of scarce taxpayers’ money in to a pit that we don’t know the depth of, I want to meet the Taoiseach, the governor of the Central Bank and the Financial Regulator,” Mr Kenny said.

For its part, the Irish Congress of Trade Unions has summoned its public services committee to Dublin tomorrow to discuss the new pensions levy.

Its executive council will convene on Wednesday and Impact general secretary Peter McLoone said a firm plan will emerge from this.

“Workers are prepared to do their bit for economic recovery, but they cannot be expected to do it alone while those who created this mess walk away scot free,” he said.

Despite union vows to step up protests the Taoiseach is expected to press ahead with the €7bn cash injection into Bank of Ireland and AIB.

Yesterday Mr Gormley said executive pay would have to be slashed if the state uses taxpayers money to shore up the banks.

His colleague, Minister Eamon Ryan, said he expected an orderly transition of banking executives to new personnel not linked to the sector’s recent collapse.

However, Larry Broderick, general secretary of the Irish Banking Officials Association, said the re-capitalisation should not be viewed as a “get out of jail card” but a strategic investment which would deliver a return.

The Government is also working on measures to ease pressure on struggling businesses by cutting energy prices by more than 10% and focusing grants on job creation programmes — such as yesterday’s home insulation fund.

However, contrary to some reports the job-creation strategy is not understood to include a scheme to buy up shares in companies or a significant relaxation in PRSI responsibilities.

This weekend the Taoiseach was interviewed by RTÉ’s Marian Finucane in which he denied the fiscal measures favoured Fianna Fáil backers in the property sector.

“I’ve been listening to it from opposition speakers in the Dáil up until last week suggesting that a decision in relation to how we deal with the banking system is based on developers. It is nothing to do with it, I don’t make decisions on that basis,” he said.