Unions and IBEC slam Government

TALKS on a new national recovery plan got underway in adversarial fashion last night with both employers and unions criticising the Government’s economic efforts and the Taoiseach insisting public service pay cuts must be part of the December budget.

Speaking in the Dáil, Brian Cowen said a €4 billion “adjustment” in the public finances was required and public servants would have to play their part. “On the question of the public sector pay bill, as I have stated, we believe that is an area of public expenditure from which a contribution will have to be made towards making that adjustment.”

Mr Cowen said the Government was anxious to discuss how that contribution could be best achieved “while recognising that it must be achieved”.