Labour TDs flag rejection of public sector pay cuts

Fears of a backlash fuelled by austerity fatigue gripped Labour as backbenchers signalled they would not vote for across-the-board public sector pay cuts.

Energy Minister Pat Rabbitte said a “tipping point” was at hand as he backed cabinet colleague Joan Burton’s assertion that austerity’s limits had been reached.

As Ms Burton’s remark was interpreted by some Fine Gael ministers as a sign Labour had “lost its nerve” on deficit reduction, dealing with the Croke Park II no vote provoked more tensions within the Coalition.

Labour TDs expressed deep unease at any move to go ahead with threats from Public Expenditure Minister Brendan Howlin and others to impose public sector pay cuts of 7% across the board.

Labour MEP Phil Prendergast hit out at the Government’s “autocratic” style in dealing with unions, and Carlow-Kilkenny TD Ann Phelan warned a backbench rebellion against public sector pay cuts being forced through the Dáil could trigger a snap general election.

“If I don’t support the Government, and if all my party colleagues took the same line, that would mean we would be voting against the Government and we would perhaps be facing into a general election,” said Ms Phelan.

“That is not what this country needs at this particular moment in time. The last thing we want is political instability.”

Waterford TD Ciara Conway suggested that legislation could be put through the Oireachtas to target the pay of high earners only.

“What I wouldn’t rule out is legislation for the higher earners because what Croke Park Two proposed to see happening was to protect middle and lower income workers,” she said. When we talk about legislation across the board, I don’t think that’s something anybody would like to see.”

Dublin TD Michael Conaghan threw doubts on threats to push through pay cuts. “I don’t see it coming to that,” he said.

Galway West TD Derek Nolan said: “We are nowhere near that yet. I am in favour of further consultation with the unions.”

Mr Rabbitte said: “We are reaching a tipping point.”

Transport Minister Leo Varadkar said the Government had no option but to continue with its austerity agenda.

While insisting he agreed with much of what Ms Burton said, Mr Varadkar made a pointed reference to why the Government’s hands are tied.

“I think what she would also say is that austerity in Ireland has not been a policy choice. It is only when we get out of the troika programme that we are free to make decisions of our own again.”