Talks on a new national economic recovery programme adjourned at around 9pm tonight and will resume in the morning. The adjournment is to allow Government officials to prepare positions in a number of areas, including pension protection, taxation, corporate governance and unemployment initiatives.
The issue of pay in the public sector and Government proposals to cut exchequer spending by €2 billion this year have not yet been reached in the talks.
The Taoiseach, Brian Cowen, spent the day at Government Buildings and held a number of meetings with participants.
Earlier today, union leaders said talks were entering a crucial phase and that they were expecting their first engagement with the Government on public-sector pay.
The head of Impact, the State's largest public sector union, Peter McLoone, said he did not know whether this would take the form of a discussion or whether the Government would table specific proposals.
The general secretary of the CPSU, Blair Horan, said that the first indications of the Government's proposals for saving €2 billion this year may also emerge this evening.
The president of Siptu, Jack O'Connor, said that any agreement would be contingent on the better-off contributing in accordance with their capacity to do so. He said that this would have to happen this year.
Disability Federation of Ireland (DFI) also insisted those weakest in society should not bear the brunt of any planned cutbacks.
John Dolan, chief executive of DFI, said: “People with disabilities, their families and carers are frightened and anxious at present as they witness the day by day loss of jobs and services,” Mr Dolan said.
“They are wondering if their services will be seriously affected in this present economic downturn and they need immediate and transparent reassurance.”
The public-sector negotiating group of unions is scheduled to meet later this evening.
It is expected that the Government proposals to reduce the public sector pay bill will involve the introduction of a new pensions levy.
Government, unions and employers are attempting to agree how to shave €2 billion off public expenditure this year.
Trade union leaders believe that crucial issues, including public sector pay, in the new national economic-recovery programme could come to a head quite quickly.
The general secretary of the Irish Nurses' Organisation, Liam Doran, said yesterday the next 48 hours would probably be critical in balancing income and expenditure "in terms of realising savings that all parties say have to be achieved in 2009".
Mr Doran said that a lot of preliminaries were still being worked through at the talks. He said the INO's position remained that it opposed cuts in pay and would resist these with all means available.
Blair Horan, general secretary of the Civil Public and Services Union, said the trade unions did not yet know the detail of the Government's proposals for saving €2 billion in exchequer spending this year. He said this information would come tonight.
Earlier yesterday, the social-justice campaign group Cori Justice proposed that the Government could generate around €11.7 billion by increasing its total tax take to just below the EU average over a five-year period.
In a submission to the talks on a national economic-recovery program, Cori recommended that all tax breaks should only be available to be claimed at the standard rate. It also proposed the introduction of a new land-rental tax that would be based on the annual rental value of a property if there were no buildings on it.
Cori has also proposed the introduction of a carbon tax but said this would have to include protections for poorer and rural households.
Cori said these measures would generate over €11 billion in a five-year period and would leave the total tax take still 1.5 per cent below the EU average.
It also suggested that additional funding could be made available through better value-for-money initiatives and by improving efficiencies. Cori said the country could not have European level of services while at the same time having US levels of taxation.
The organisation has also proposed that as part of measures to save €2 billion in exchequer spending this year the Government should not introduce the new contract for hospital consultants and should look again at making savings on fees paid to pharmacists.
The executive of the Irish Congress of Trade Unions met yesterday to review progress in the talks. The employers' body Ibec also held talks with Government officials to review progress made to date.
The talks yesterday dealt with energy and regulation issues.
