Brendan Howlin (Wexford, Labour) | Oireachtas source

The Deputy is right. It remains the view of Government that a negotiated agreed settlement would be the preferable way to advance these issues. That is why we did not take unilateral action as our predecessors in government did. In a very measured way we opened the books of the State to the trade unions to let them understand that we had a hole in the arithmetic, thanks to the previous administration which had unallocated savings for this year and especially for next year, that I believed could not be met by continuing reductions across the board in respect of front-line services.

On that basis we sought a proportionate contribution from the pay bill, that is, since the balance of adjustments to be made on the expenditure side was €3 billion and since the pay bill is of the order of 35% of current expenditure, €1 billion of the €3 billion should come from that. We sought to do that in a proportionate and fair way with the burden falling on those best able to meet it and for the people who understood, the trade union movement and the workers' representatives to negotiate that. The negotiated settlement brokered by the Labour Relations Commission was demonstrably a fair proposal. I agree entirely that to ask any set of workers to vote for a worsening of their conditions in any way, whether it is an extra hour's work for no pay or any reduction at all, is difficult. All the adjustments we have made over the past few years have been difficult for people dependent on social welfare, health and education services. All expenditure reductions are difficult.

The trade union movement will want to reflect on its position. The Government must and is reflecting on its position but the inescapable issue that we must address is that we need to find €300 million this year from additional payroll savings.

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