Robert Dowds (Dublin Mid West, Labour) | Oireachtas source

The result of the ballot must be accepted by all of us. I acknowledge that it was very difficult for public servants to be asked yet again to accept any pay reduction or a worsening of their conditions of work. Like others, I recognise that public servants have made a very great contribution to efforts to tackle the appalling financial state in which the country finds itself.

I commend the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, for his work in this area. He strove night and day, with very respected and hard working trade union leaders, to come up with a fair and equitable arrangement which, unfortunately, has been rejected. I have no doubt that part of the reason for the rejection was that people were completely and utterly fed up with austerity, and that goes for every one of us. The more we can persuade the central European authorities to loosen the purse strings to enable Europe's economy to expand again the better because this will help us to get out of what is a very difficult situation.

It is clear from the details of the proposal that the Government was attempting to deal with the need to save €300 million this year in as fair a manner as possible. This is evident in the fact that only salaries greater than €65,000 a year were to be cut in terms of core pay. Politicians were rightly included in that pay cut, with other public servants such as doctors and judges who are also very well paid. One of the commendable aspects of the arrangement was the effort to ensure fairness for lower paid workers. For example, the position of younger teachers who had been disadvantaged was strengthened. Deputy Gerald Nash referred to others who similarly had their positions protected.

The problem dates back to when Fianna Fáil negotiated with the troika. Some cuts were not assigned to any particular area. The result of that complete and utter fudge by Fianna Fáil and also the meltdown in the public finances over which Fianna Fáil presided is that the Government needs to reduce the public sector pay bill again. This is a case of handling another unexploded mine which Fianna Fáil passed on to the Government.

I welcome today's news that in deciding how to achieve savings of €300 million the Government has requested Mr. Mulvey to make contact with the unions to explore the possibility of holding talks. I am convinced that the best way to deal with this issue is through negotiation. It is far better than trying to ram through legislation and imposing something on workers who understandably are upset and unhappy. It worth remembering that when Fianna Fáil held the reins, it imposed a 7% reduction and cut the national minimum wage by €1, thus taking €35 to €40 a week from the lowest paid workers, most of whom are women.

The Government's proposed approach would help to guarantee industrial peace, which is obviously preferable to conflict and confrontation. Whatever happens, it is vital that the 13% of public servants, including politicians, doctors and judges, bear the brunt of the cuts as was the case under the original plan. Increments for higher paid civil servants should also be frozen. It is highly regrettable that the Government has had to return to the situation where more public service pay reductions are necessary. It is my hope this will be the last time they will be asked to accept reductions.

There is a very important message in the financial mess from which we are trying to escape. It points to the need for a new type of politics with a sound economic base. The societies in Europe which are most equal and fair are the Nordic countries. These are also the countries that keep very tight control of their finances. They do not allow themselves to go seriously into the red, whereas we have tended, particularly when led by Fianna Fáil - it is very hard to resist that urge - to try to buy the electorate, rather than trying to sell it an idea as to how society should be organised, whether it be in the area of health or education, for example. We need to get away from this type of politics. We need to begin with a determination to maintain our economic base as strong as possible and then build as fair and equal society as possible.

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