Croke Park II - A defining moment has arrived

When the very brief discussions — 30 minutes — between Government and unions around a renewed Croke Park deal ended yesterday union leaders expressed dismay and suggested that what they termed as “radical” proposals from Government would not be accepted by their members.

Such an absolute, dramatic rejection is not unusual at this stage of any negotiations but its tone confirms that this will be a difficult, fraught process. The importance of these talks, which resume today, in creating a more efficient public service that costs less in pay and pensions is absolutely central to the prospects of everyone living in this county, not just those directly involved. The importance of establishing the credibility the current arrangement lacks should not be underestimated either.

This rejection was inevitable as any successor to a deal — Croke Park I — that promised that there would be no cuts to core pay or forced redundancies would seem challenging. This is confirmed by the reaction of Impact, the union that represents over 35,000 health workers, civil servants and local government staff, which said that agreement on compulsory redundancies in the public sector would be “impossible”.

Unfortunate most certainly, impossible certainly not.

Nurses’ representative Liam Doran of the INO said the proposals “will not form the basis of any agreement” and described the opening terms as “a very onerous, high level critique from Government which, if they are serious, will make an agreement impossible.”

These firm rejections suggest that the long-fingered, difficult moment may have arrived. Government wants to cut the public service pay and pensions bill by a further €1bn — that’s €1bn in addition to any cuts claimed under the current deal — before 2015. If that schedule is to be met then cuts of around €300m must be achieved this year — and the clock is running.

Government, at least the Labour wing, might wish it could rubber stamp a largely unchanged deal but the very questionable progress made in recent years and the European Commission’s determination to push Irish public sector pay rates much closer to EU norms means they cannot. The simmering unease among Fine Gael backbenchers — and the odd cabinet member too — means real achievement and sterner, more independent auditing must be agreed this time.

Like it or not Croke Park I, and Croke Park II if it is agreed, represents a fault line in this society. Those who enjoy its benefits see it as a model of partnership between employer and employee. Others, bruised by trying to survive in a far less benign environment, see it as facilitating the worst kind of protectionism and feather-bedding. Of course the truth, or some of it at least, lies is somewhere in the middle.

Nevertheless, unless our Government is free to manage our public service in a way that reflects the reality of today’s economy, the public sector pay and pension rates that pertain in the countries that are helping us survive with an annual deficit of nearly €20bn and in our own private sector, then our road to recovery will be far longer and more difficult than it needs to be. Let us hope all involved have the courage and objectivity needed to make the process a success, the country cannot, if there is to be a deal, afford anything else.

A defining moment has arrived.