Union leaders meet Ahern on Estimates cuts

Concern about the implications of last week's Estimates for a new social partnership deal will be expressed by union leaders …

Concern about the implications of last week's Estimates for a new social partnership deal will be expressed by union leaders at a meeting with the Taoiseach today.

The meeting with Mr Ahern and senior Cabinet colleagues was sought by the Irish Congress of Trade Unions in light of the cutbacks contained in the Estimates.

Unless next month's Budget contains significant counter-measures, including steps to improve access to housing, transport and childcare, union support for a new deal is unlikely.

Negotiations between the social partners, on a possible successor to the Programme for Prosperity and Fairness (PPF), had been due to take place today but have been put back until after tomorrow's meeting. Mr David Begg, the general secretary of Congress, said any new agreement would have to deliver quality-of-life improvements in several areas.

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In its opening submission to the other social partners, Congress had emphasised the need for progress in four key areas: housing, health, public transport and childcare.

Unlike previous partnership deals, which had dealt with every aspect of economic life, Congress was pressing for a focused agreement delivering improvements in areas of identified social need.

The Estimates published last week made progress in these areas "extremely difficult", he said.

It was "really important" that the Budget addressed matters such as access to affordable housing, which was now the "single biggest social problem for working people". More than 50,000 families, comprising about 150,000 people, were on local authority waiting lists, while 300 people were sleeping rough in Dublin every night, he said.

Despite this, only 272 "affordable houses" had been built last year out of a total of 52,000 house completions.

"That's an acute problem and even if you give someone a 100 per cent pay increase they may still not be able to put a roof over their head. If partnership agreements are to mean anything they have to address issues such as this," said Mr Begg.

The Minister for Finance, Mr McCreevy, and the Tánaiste, Ms Harney, are to attend tomorrow's meeting, at Government Buildings.

In its submission to the social partners, Congress said implementation of the Government's health strategy and access to medical cards were the key issues on its health agenda.

As well as the abolition of the first-time home-buyers' grant, which was severely criticised by Congress, last week's Estimates removed provision for a promised increase next year in the numbers eligible for medical cards.

Congress also sought improvements in public transport. Instead, as a result of the Estimates, the completion of the Luas light rail system for Dublin will be delayed and the promised metro system for the capital has also been put back.

Negotiations on the pay issues of a new partnership deal have made little progress. Unions are seeking pay increases to at least match the rate of inflation, as well as a local bargaining clause.

Employers say a six-month pay pause is required to restore competitiveness lost during the three years of the PPF.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times