Eamon Gilmore (Dún Laoghaire, Labour)

I welcome the fact that there will not be a strike tomorrow. Some of the strident voices that appear to wish for conflict are not helping the situation. As the Taoiseach will be aware, the Labour Party has been arguing for quite some months that the reductions in the public service pay bill should be achieved by way of a negotiated agreement which would involve significant public service reform. The difficulty the Taoiseach is in is that he did not engage in those discussions until the eleventh hour. There was not serious engagement until after the first strike. The Taoiseach appeared to be too interested in listening to some of the hardline commentators who appear to be pumped up on the steroids of conflict rather than in engaging seriously at an early stage. He is now in a situation where there is a very narrow period of time within which agreement can be reached.

What is the Taoiseach's intention here? Does he intend to conclude an agreement before the budget? Does he accept that any agreement which is negotiated will have to be put to a ballot? He is now in a situation that such a ballot will have to take place after the budget and may, in turn, be influenced by its content. Has the Taoiseach considered what his position will be if an agreement is not accepted in a ballot? I heard his reply to Deputy Kenny, that he is still seeking €1.3 billion in savings, which presumably will be reflected one way or another in next week's Budget Statement. How will the Taoiseach achieve that €1.3 billion in savings if there is no agreement?

Can the Taoiseach explain his point about unpaid leave being taken over a period of years? I understood from his reply to Deputy Kenny that the formula he is now proposing to agree is one whereby there will, in effect, be a cut in pay in 2010. However, the corresponding leave which is to be negotiated to allow that to happen may be taken over a number of years. Is the Taoiseach saying that the pay reduction will take effect in 2010, but that the leave arrangements might not be taken until 2011 or 2012? I heard one trade union leader say this morning that it might even be out to 2013.

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