THE INTERNATIONAL Monetary Fund (IMF) has deferred a decision to ratify the bailout for Ireland because of the decision to hold a Dáil vote on the issue next week.
The IMF was due to ratify its €22.5 billion portion of the €85 billion bailout yesterday but has postponed the decision until next Thursday, the day after the vote.
Fine Gael leader Enda Kenny expressed concern that the decision of the Fianna Fáil parliamentary party on Thursday to seek the approval of the Dáil for the deal caused the fund to delay its decision.
Last night Tipperary TD Mattie McGrath, who voted against the legislation on the minimum wage, said he intended to vote against the EU-IMF bailout unless changes were made.
“The agreement states that it is only a draft . . . I can’t believe that the IMF is not imposing a maximum wage of €200,000 rather than insisting on a cut in the minimum wage. Unless there are changes I will be voting against it,” he said.
In the Dáil Mr Kenny asked Minister for Finance Brian Lenihan to comment on the situation that had arisen because of the decision of the Fianna Fáil party. “This is causing serious international concern . . . what are the implications for the agreement if the vote is lost?”
Mr Lenihan responded that the Government, rather than Fianna Fáil, had decided to submit the general arrangements to political approval next week in the House.
A fund spokesman said its executive board would now delay consideration of the rescue plan until after the vote.
“The authorities have informed us that while parliamentary approval of the EU-IMF support package is not legally required, the Irish Government has put the motion before parliament to strengthen political support for the agreement,” the spokesman said. “In deference to Ireland’s parliamentary process the IMF has decided to postpone consideration by its board of the proposed loan under the extended fund facility until after the debate.”
If the Dáil backs the package as expected, IMF managing director Dominique Strauss-Kahn is expected to recommend approval by the board of the proposed loan as early as next Thursday.
Meanwhile, the Bill reducing the minimum wage by €1 to €7.65 an hour, as well as cutting Ministers’ pay and public service pensions, was passed by 79 votes to 74 in the Dáil.
Mr McGrath joined the Opposition in voting against the Bill. The TD lost the Fianna Fáil whip for voting against the Stag Hunting Bill in June but he is still a party member.
During the debate on the Financial Emergency Measures Bill the cut in the minimum wage met with strong criticism from the Opposition.
Green Party TD Paul Gogarty expressed support for a Labour Party amendment to protect existing workers from a pay cut, but added that if there was a vote he would support the Government because that was the way the system worked.
“I support this amendment but if the whip is applied I . . . will vote with the Government,” said Mr Gogarty who was one of the 79 TDs to support the Bill.
As well as reducing the minimum wage, the Bill will reduce the Taoiseach’s salary by €14,000 a year to €214,000 while Ministers will have their pay cut by €10,000 to €181,000. It also gives effect to reductions in public service pensions, which average 4 per cent.
Sinn Féin and two Dublin left-wing Independent TDs, Finian McGrath and Maureen O’Sullivan, joined forces to form a technical group in the Dáil.
The move will enable them to obtain more speaking time in debates and to participate in Leaders’ Questions where they can challenge the Taoiseach directly. The arrangement has become possible because of the recent election of Sinn Féin’s Pearse Doherty.
