THE TÁNAISTE has repeated that further cuts in public service pay could not be ruled out.

Mary Coughlansaid nobody in Government or in the Opposition was in a position to say what adjustments were needed in the context of next year's budget.

“However, our clear view is that public-sector reform is for the benefit of the citizens of the country. Arising from public-sector reform, we can find savings which can be taken into consideration in the context of the adjustments we may need next year.”

Ms Coughlan was replying to Labour leader Eamon Gilmore, who referred to the case of Tullamore-based Department of Education clerical officer Mary Duffy, who had to hand back the keys of the family house when her husband lost his job.

He challenged the Tánaiste to answer the question, which, he said, she had refused to answer in the Dáil on Tuesday.

“Will she give Mary Duffy a straight answer as to whether her pay will be cut a third time by the Government?” He said Ms Duffy’s family was now trying to get by on her pay of €451 a week.

“They are now living in rented accommodation and paying a rent of €625 per month. As a result of the pension levy which was imposed last year and the cut in pay which was imposed by the budget, Mary’s pay has been cut by €77 per week.

“Meanwhile, the Government did a sweetheart deal for some of the more senior officers of Mary’s department and other departments, people who are paid six or seven times what she is paid.

“Mary Duffy and her colleagues have been subject for a year or more to a vulgar campaign of abuse demeaning the work they do and demoralising those who do it.”

Ms Coughlan said she refuted, in the strongest terms possible, any political accusation that the Government in any way had launched a vulgar campaign against public servants.

“Under no circumstances will I accept that,” she added. “We, and all the members, have always had the highest regard for our public servants.”

She said the Government wanted to ensure that public servants had sustainable employment and that the economy had the wherewithal to ensure that happened.

“That has not been the circumstance in the context of the economic change that has taken place here. We have not had a sustainable situation with regard to our public finances. It was on that basis that we had to make such difficult decisions.”

On the pay and conditions of assistant secretaries, the review body on higher level pay indicated that the bonus was indicatively part of their salary, she said . “The Minister for Finance accepted that a further reduction that would equal a reduction of 20 per cent, would be disproportionate.”

The Government, Ms Coughlan said, very much appreciated the difficulties facing public servants. “We also appreciate the fact there are so many people unemployed.” Scarce resources were being targeted at those who needed them.

Insisting that the Government had encouraged “a campaign of abuse and vilification of public servants”, Mr Gilmore said it had been undertaken at arm’s length and by way of the various spinning mechanisms it had developed.

When he again asked Ms Coughlan if there would be no further pay cuts for public servants, she replied: “I have said three times, we are not in a position to give such undertakings. It would be completely wrong to give such an undertaking in January.”