Opposition wants Cabinet to forgo pay increases

DÁIL REPORT:THE TAOISEACH-elect, Brian Cowen, came under renewed Opposition pressure to decline the significant pay increases due to be paid to Cabinet members in September in the wake of his calls to the social partners for pay restraint.

But Mr Cowen said that the Government had not revisited the pay decision and he pointed out that the increases had been recommended by an independent pay group. "We deferred that pay rise for over a year and decided to pay the increase over a further three-year period. That was a Government decision, taken some time ago," he said in the Dail.

Fine Gael deputy finance spokesman Kieran O'Donnell claimed it was hypocrisy for Mr Cowen to say he had a problem with business leaders getting exorbitant pay awards when there was "none more exorbitant" than the €38,000 pay increase due to the Taoiseach.

Mr Cowen insisted, however, that it was untrue to say ministers would get such amounts, because the payment was over three years, and he added that there was "nothing more hypocritical than seeking to support an independent pay determination system that has served successive governments for 40 years and then walk away from it when a populist argument arises that suits one's case".

Fine Gael deputy leader Richard Bruton first raised the issue and pressed the Tánaiste on the matter following Mr Cowen's comments about the forthcoming pay round and social partnership agreement: "You spoke for many when you urged the need for greater productivity increases and pay restraint. Will you apply these principles to the activities of your Government?"

The Fine Gael finance spokesman said the Government "recently increased the number of ministers of state by three, increased the number of Oireachtas committees by three, and an order is soon to be made whereby ministers will receive huge increases in pay without regard to performance or productivity, including the Tánaiste, who will be due €38,000 if he is then taoiseach".

He asked if Mr Cowen intended to withdraw the order "to provide for increases for ministers and other members of Government". The Tánaiste said that the Government had not revisited the matter since that decision was taken.

Mr Cowen came under further pressure later when he took his final question time as Minister for Finance.

Labour finance spokeswoman Joan Burton said if it was to be a period of greater economic difficulty "what moral authority or leadership is shown by the Government, which is accepting increases far in excess of what people earn as an average wage? Where is the moral authority in that stance?"

Calling for the Tánaiste to "lead by example", Mr O'Donnell, Fine Gael TD for Limerick East, asked would he forgo the €38,000 pay increase. "The Tánaiste yesterday said he has problems with business leaders taking exorbitant pay increases, but this is hypocritical, because none are more exorbitant than the pay increase he is to receive." He added that "some 80 per cent of people feel the Government should not take this pay increase, so why is it being accepted?"

Mr Cowen said, however, that the Government had decided that for politicians a "pay pause will take place for one year and the pay recommendations will be implemented over the following three years. The continuing mantra in this House relating to imminent pay rises of the amounts mentioned are not true, as the deputy knows".