Wage talks on unsure footing

It is early days yet, but the Government and the Irish Congress of Trade Unions have indicated that the achievement of another national pay agreement will involve tough talking and tough decisions if one is to be reached.

Taoiseach Bertie Ahern indicated yesterday that he wants to start negotiations for a successor to the PPF in the autumn. Today, the Cabinet meets to agree what they euphemistically call “adjustments” in public spending and what most other people would describe as cuts in public spending.

It is understood that the Minister for Finance, Charlie McCreevy, is demanding cuts amounting to 300 million across all Government departments. However, some economists are sceptical that such a level of saving will be inadequate enough to meet the economic constraints that the Government is inevitably going to face.