TDs back down on ‘unfair’ cuts

LOWER-PAID public sector workers have had their wages reduced by more than 10% in the past 18 months, the Taoiseach admitted yesterday as his backbench TDs backed down on their opposition to the “unfairness” of the cuts.

At a parliamentary party meeting last night, Fianna Fáil TDs retreated from their stance that the Government should reinstate pay cuts for higher paid public servants who are getting special treatment under Government Budget plans.

Those earning more than €125,000 a year were due to take a pay cut of between 8% and 12% in the budget plans. But just before Christmas, the Government decided to take into account the fact that they have already lost their bonuses, so the pay cut will now amount to just 3%-5%.

A motion calling on Finance Minister Brian Lenihan to reinstate the cuts for high earners was withdrawn following a meeting of the Government party last night.

Michael Kennedy (Dublin North) and Mattie McGrath (Tipperary South) had drawn up a motion for last night’s meeting calling for the full pay cuts to be reinstated so that lower-paid public servants would not have to shoulder a disproportionate burden.

It also called for clarification on how many senior public servants would get to keep their higher rate of pay.

The figure was reported to be around 600, even though Mr Lenihan said last month it would be just 160.

Despite the motion having “significant” support according to Mr Kennedy, the TDs backed down on the stance they had taken on behalf of their constituents after Mr Lenihan last night convinced them of the merits of the decision.

Earlier, Taoiseach Brian Cowen told the Dáil the pay adjustments were made in a progressive way and that “lower-paid public servants have suffered less of a net loss, proportionately, than those in higher grades”.

Fine Gael is expected to use Dáil time to challenge Mr Lenihan on the U-turn.