Cowen may forgo pay increase for Ministers

TÁNAISTE AND taoiseach-elect Brian Cowen has given a strong indication that Government Ministers will forgo their controversial…

TÁNAISTE AND taoiseach-elect Brian Cowen has given a strong indication that Government Ministers will forgo their controversial pay increases that have already been deferred to September. HARRY McGEE, Political Staff reports

The Irish Timesunderstands that Mr Cowen is willing to sacrifice the increases due to be phased in over three years from September - including a €38,000 increase that would bring his taoiseach's salary to €310,000.

However, it is not known at this stage if Mr Cowen will defer the increases again or scrap them altogether. He is said to be anxious not to allow a situation develop where Government Ministers will be unable to be awarded any increases in future because of negative public reaction.

What is clear is that moves will be made by Mr Cowen in this regard, but will not happen before what was yesterday described as the "business end" of the national pay talks involving all the social partners, which began last week.

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The likelihood is that the Government will make a gesture in this regard as a quid pro quo for concessions from other parties at the talks.

Speaking in the Dáil yesterday, Mr Cowen strongly hinted that this was the course of action that will be taken by the Government.

"The issue here is that the pay talks have begun and a contribution from all sides can be made in the context of those pay talks and those negotiations, but not beforehand," he said.

This was in response to a question by Fine Gael leader Enda Kenny in which he asked if Mr Cowen was prepared "to show political leadership to every worker in the country by rejecting the ministerial pay recommendations".

Elsewhere, during Leaders' Questions, commenting on the award made to higher paid office holders, including politicians, Mr Cowen said: "The Government is anxious to sit down with partners and address the issues in a way that will meet the requirements of everybody."

Mr Kenny had asked if it was appropriate for Ministers to get pay increases of up to €38,000 "when every other worker in the country is being asked to accept realistic pay increases and to tighten their belts".

The pay increases were awarded last October by the Review Body on Higher Remuneration to around 1,600 senior staff including politicians, the judiciary, gardaí and heads of Government departments and State agencies.

The increase proved to be highly controversial and in the face of ongoing public criticism, Taoiseach Bertie Ahern announced that Ministers would defer the awards made to them for a year.

Ministers were awarded a rise in salary of 12 per cent, while the Taoiseach's salary was to be increased by 14 per cent under the terms of the review body's report.