Taxation, pensions, mortgate arrears and a union proposal for a national recovery bond are to be discussed during crucial talks between the Government, unions and employers on the economic crisis this afternoon.
The social partners including Ictu and employers’ body Ibec agreed yesterday to begin detailed talks on the basis of a framework document that includes a commitment to finding spending cuts of €2 billion this year.
However, Ictu general secretary David Begg, said last night that the Government had not yet put forward any specific proposals on how the €2 billion in cuts sought would be achieved. The contentious issue of public sector pay is not expected to be reached before the weekend.
Minister for Social and Family Affairs Mary Hanafin said in an interview this morning she was hopeful an agreement between the Government and social partners would be ready for Cabinet approval early next week.
She told RTE's Morning Irelandthe talks had shown a "willingness" among all parties to tackle the deficit.
“Everybody accepts the seriousness of this,” she said. “But we do realise that we can do it.”
She said cuts could not be achieved without looking at the cost of the public pay bill, which accounts for a third of current Government expenditure. “If you’re going to take €2 billion out of the economy, [pay cuts have] to be on the table,” the Minister said.
Speaking to The Irish Timesthis morning, the general secretary of the trade union Impact, Mr Peter McLoone said he didn't see "any reason" why the talks should go up to the "midnight hour" of Tuesday. He added that the current process was more an exercise in "pain sharing" than about the partnership process.
Mr McLoone made his comments following an address to a seminar on education in DCU.
He said the next few days of negotiation would be “difficult, but not just for the people in the negotiating room.
“The entire country looks to us to get this right and to make sound decisions in the full knowledge that much of what is proposed will involve difficult choices, which will be unpalatable for some,” he told the seminar.
“But I can assure you that we mean to get it right and that means the bulk of the load must be carried by those best able to do so, and by those who are responsible for causing this crisis in the first place,” he added.