THE TRADE union movement has urged the Government to renationalise Eircom as a means of facilitating the expansion of broadband and to establish a “national recovery bond” scheme to allow the exchequer to raise money from the public as part of its proposals for dealing with the current economic crisis.
It is understood that in its submission to the Government, which will be published today, the Irish Congress of Trade Unions (Ictu) says it could be prepared to discuss the postponement of the current national pay deal in the public sector. However, it also calls for the burden of economic recovery to be carried mainly by those who can afford to do so as part of a new social solidarity pact.
The employers’ group Ibec, in its submission to the Government, has called for public sector reform and the introduction of new supports for business.
It is understood that its submission restated its call for an ending of the defined-benefit pension arrangements for new entrants to the public service and argued that reductions in public-sector numbers were unavoidable. It also urged that the recommendations of the group advising the Government on cutbacks – the so-called Bord Snip Nua – should be implemented immediately rather than next year.
It is understood that Ibec also sought the Government to introduce a new market support fund for companies affected by the rise in sterling and new loan guarantees to allow small and medium enterprises to access funding from the European Investment Bank.
It also looked for a commitment that critical infrastructure projects would be completed.
It is understood that Ictu said it is not prepared to engage with the economic recovery process established by the Government if this was aimed solely at cutting pay and services. However, it said it was prepared to discuss means of addressing the growth in the public sector pay bill.
Informed sources said the document argued that Ictu could consider discussing a delay in introducing the pay rises due next September under the current agreement.
It also suggested that it could discuss issues such as overtime and more flexible working.
Sources said Ictu also maintained this was not an exhaustive list of issues and there could be a variety of different and imaginative ways to deal with the economic problems rather than adopting a “slash and burn” approach.
It is understood that Ictu contended that a renationalisation of Eircom should be carried out as a means of facilitating the expansion of broadband coverage. It said this would represent “a national competitive advantage”.
It also proposed the Government should establish “national recovery bonds” that the public could buy and redeem at a later date.
However, sources said such a scheme should only be established in the context of an overall recovery plan that the public could buy into.
Sources said a national recovery bond scheme could represent a cheap way of the Government raising funds.
Ictu also maintains the tax base would have to be widened so there should be a shift from spending taxes such as VAT to direct taxation.
Although Ictu has indicated that the current pay deal could be on the table, some unions have signalled opposition to such a move.
The Civil, Public and Services Union, which represents lower-paid civil servants, wants the increases paid as scheduled in September. It indicated that it could offer the Government greater flexibility in working but was totally against any cuts in pay or allowances of any sort.
The Association of Garda Sergeants and Inspectors said it opposed any further pay freeze.
