SEANAD REPORT:THE DIVIDE that was developing between public and private sector workers would be so destructive that it could accelerate our economic difficulties and the insolvency that could be the end-game for many countries, including our own, warned Jim Walsh (FF).

Salaries in the public service were too high. “The pensions we have are unsustainable. The extra contribution we are now making towards pensions, in my opinion, does not go near to meeting the cost of them.”

There was a need to reduce public service salaries by a minimum of 10 per cent and the numbers by at least 15 per cent. In the case of the latter, “they have to be the people who are not performing in the public service”.

He said if we failed to do this we would not be able to address the difficulties which would confront us over a number of years.

Mr Walsh said he would appeal to the social partners to play their part in tackling the economic problems that needed to be overcome. They had been instrumental, through benchmarking and otherwise, in adding to the depth of the problems with which we now had to deal. There was a need for solidarity between the public and private sectors.

Ronan Mullen (Ind) said there was potential for considerable public unrest over the pension levy.

Having heard representatives of the Civil Public and Services Union speaking on the radio, he wondered whether some of our union leaders realised the gravity of the situation facing us.

There must be an emphasis on the need for solidarity. Some of the leadership in that regard had to come from the trade union movement itself. In relation to the cost-saving measures that were being taken, there was, in an objective sense, injustice in that some people were being asked to bear the burden in the short term.

However, the message had to go out loud and clear that going on strike would not achieve anything and was incompatible with the spirit of solidarity that was required.

He said it might be the case that those currently being asked to take a disproportionate share of the sacrifice would have to be compensated in the future.

Joe O’Toole (Ind) said that strikes were never a good thing, but there was a time when people had to express their views on something “not to achieve an objective, just simply to say ‘we will not accept this; it is not good enough’.” There was a danger that there would be work stoppages. The Government should examine how it could deal with its proposals in the broader sense. In particular, it should address the issue of high earners who were not being asked to make a commensurate contribution.

Terry Leyden (FF) urged that Senators and TDs be appointed to the boards of banks receiving State assistance.

He said legislation provided for such appointments. Many members of the Oireachtas would be prepared to serve pro bono on bank boards. These people could do an excellent job because they knew what was happening. Some parliamentarians would have the necessary expertise, and he hoped that they would submit their names to the relevant Minister.

Responding to calls for a debate on bank recapitalisation, Seanad leader Donie Cassidy said there was a need to ensure that small and medium-sized businesses could access credit which they needed to survive.