The Minister for Public Expenditure mentioned any settlement to extend public sector pay must be truthful to public servants and to taxpayers, saying it is going to be “difficult to strike a balance”.
Michael McGrath mentioned the Government must be cautious to keep away from “wages chasing inflation”, warning it’s going to make the present financial local weather worse.
Mr McGrath instructed RTÉ radio’s Morning Ireland there will probably be “meaningful discussions” over the approaching weeks with unions in regards to the public sector pay settlement. The Government had honoured in full the prevailing pay agreements and had acted in good religion, he mentioned.
“I’ve acknowledged that the present stage of inflation is having an actual impression on personal sector employees, public sector employees and people who find themselves not in employment.
“It is having an impression on folks’s residing requirements.
“We’re all seeing that by way of the day-to-day prices which might be being incurred.
“From my perspective it’s important that no matter preparations are agreed are truthful to each public servants, who’ve labored actually laborious during the last variety of years, but additionally to taxpayers usually, as a result of I do have that twin duty.
He mentioned the present interval of issue wanted to be managed rigorously. The Government needed to get the nation and its folks by this era with out damaging the financial system. The difficulties at current have been unprecedented in current historical past, he mentioned.
“It goes to be a tough one to strike given the present atmosphere.
“We just need to be careful not to have a situation where we have wages chasing inflation, and we end up driving higher and making the situation worse.” He mentioned he wouldn’t get into “specific figures” forward of the negotiations because of happen subsequent week.
“As a government we have other levers at our disposal,” he mentioned. The price range in October would deal with pay, altering tax codes and bettering social welfare, he mentioned. Forthcoming decreased childcare prices would additionally scale back the burden folks confronted.
“It doesn’t solely fall on the pay invoice to deal with the inflationary pressures.
“But undoubtedly, it can and will play a role if we can reach an agreement over the period ahead.”
The Government will make sure the nation’s funds keep on a sustainable path whereas serving to the nation by this tough stage, added Mr McGrath.
While the Government would do all the things it may, it couldn’t utterly offset the impression of occasions akin to gas prices and the conflict in Ukraine. Public funds had improved, however we have been now in a interval of world financial uncertainty which meant it was crucial to deal with the general public funds prudently to keep away from additional harm “down the line.”
Mr McGrath additionally mentioned he believes that the Government is secure and can serve its full time period regardless of the sanctioning of two Green TDs this w“Our financial system is doing effectively.
There have been main points going through the nation so the Government wanted to deal with what actually issues slightly than politics, he mentioned. –Additional reporting PA