Coalition tensions on increase over public sector pay

TENSIONS are growing between the Coalition partners in the run-up to the budget, with some in Fine Gael claiming savage cuts will be necessary because Labour is protecting the pay of public sector workers.

The Croke Park Agreement is the “elephant in the room”, according to first-time Fine Gael TD Regina Doherty, who said it has to be revisited so that services are not sacrificed in order to preserve pay.

She said it was “absolutely startling” that pay makes up 70% of the health budget.

This meant deeper cuts in the remaining 30%, including a possible quadrupling of prescription charges and a €50 charge for the medical card.

“There has to be some serious re-negotiation of Croke Park,” said the Meath East TD.

“We are coming very close to realising that it is not working.”

The pay and positions of public sector workers were protected under the public service reform document published last week.

Launching the document, Public Expenditure Minister Brendan Howlin, of Labour, said he could achieve a reduction in the pay bill and “avoid industrial strife” without cutting pay. He said he would prefer to do things “by consensus rather than confrontation”.

At a briefing from Health Minister James Reilly on Tuesday, some Fine Gael backbenchers said Mr Howlin asked too much by seeking to have health cuts frontloaded.

After the meeting, Cork North Central’s Dara Murphy issued a statement saying: “We are not prepared to see the health budget decimated by virtue of jittery Labour Party Ministers.”

Fine Gael Senator, Michael D’Arcy, said cuts were going to be “deeper” because 70% of the budget was ring-fenced by the Croke Park deal, which was “protecting civil servants in a cocoon”. He said there was a “national emergency” and “we have to be brave and we have to do what is right”.

Asked if Croke Park should be re-negotiated he said: “Let’s have the conversation.”

Ms Doherty said it was “ludicrous in this day and age” that cuts were being considered for the poorest while “when you have a huge section of society who are completely protected and insulated”.

Labour backbenchers are furious that the Taoiseach appeared to hang them out to dry, stating in the Dáil that the party had made promises before the election that they changed.

The Taoiseach was questioned by Socialist TD Joe Higgins about whether he would hold Labour to account for its promises to cut college charges, and maintain social welfare and children allowance payments.

But Enda Kenny said: “You quote correctly from the Labour Party policy prior to the election. That was what the Labour Party said. It’s slightly different in the context of agreeing a Programme for Government between two parties subsequently.”

Fianna Fáil leader Micheál Martin said the Government was involved in “a deeply cynical practice of raising all sorts of issues, frightening the living daylights out of people around the country”.