TAOISEACH BRIAN Cowen is expected to invite unions and employers to a meeting next week to discuss the economy and the deteriorating public finances.
Government sources indicated that the meeting, which may take place on Tuesday, was not expected to deal with public sector pay.
Minister for Finance Brian Lenihan said on Wednesday that the Government was preparing a new economic recovery plan which was to be published in the new year. This plan is to be considered in talks with the social partners when it is completed.
Mr Lenihan told the Dáil that he expected the overall contraction in the economy next year to be somewhere in the region of 3-4 per cent - significantly more than had been forecast at the time of the Budget in October. The rapid deterioration in the public finances will again put the spotlight on the Government's intentions in relation to public sector pay next year.
More than 300,000 staff in the public service are scheduled to receive increases of 3.5 per cent next September under the terms of the new national pay deal.
However there has been some confusion as to the Government's stance in this area with mixed messages from various Ministers.
Tánaiste Mary Coughlan told the Dáil last week that the pay deal was not up for negotiation. However on RTÉ's Morning Ireland last week, Mr Lenihan said: "We can't wait forever on this. Nothing can be ruled out."
The Taoiseach issued a statement on Wednesday of last week saying that the issue of a review of the pay deal had not arisen in talks held recently with unions and employers. Later last week Mr Cowen said the Government would not try to change the terms of the pay deal for public servants without discussions under the social partnership process.
Asked if the Government intended to seek a further public-sector pay freeze, the Taoiseach said there was a range of issues facing the economy, not just that one.
An 11-month public sector pay pause will expire next autumn under the terms of the new deal.
