Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

As everybody is aware just over two years ago this Government inherited the biggest financial and economic crisis ever to face this State. We determined that we would fix the problem. We have made a lot of progress in that respect. We are now 85% of the way there. There is a piece remaining to be completed, approximately €3 billion in savings in public expenditure. The pay and pensions bill of the State is approximately 35% of expenditure so we took the approach that a third of the remaining savings to be made in order to fix our problem should come from the pay bill.

In negotiations a set of proposals was developed which provided for reductions in pay for those employed in the public service at the higher end of the pay scale and some additional working hours for those on the lower amount of working time. Approximately 87% of employees in the public service who earn less than €65,000 would not have their core pay reduced under those proposals. We felt that the proposals were fair and reasonable but they have not been accepted in a ballot of trade union members. That is disappointing but it is a reality. It is also a reality that the savings must be made. A saving of €300 million needs to be made in the payroll this year, and €1 billion between now and 2015.

We now have to reflect on the decision made. We need to hear from the trade union movement about the reasons for the rejection of the ballot and the Government will have to consider those. It is important that we do not put at risk what has already been achieved. We are now seven months from exiting the bailout. If we had not done what we have done, and certainly if we had taken advice from Deputy Ó Caoláin's party, we would be seven months from entering a second bailout. This is a time when we should not put at risk what has been done, either by failing to complete what needs to be completed or by walking into conflict and confrontation. This is a time for calm, reasoned, reasonable reflection on the outcome of the ballot and that is what the Government will do.

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