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Report to blame Social Partnership for woes

Finance Dept - Report on Dept found that social partnership did enormous damage
Finance Dept - Report on Dept found that social partnership did enormous damage

ICTU's General Secretary David Begg has defended Social Partnership after the Minister for Finance pointed to criticisms of the process in a report to be presented to Government shortly.

Brian Lenihan said the report on the operation of the Department of Finance found that Social Partnership did enormous damage to the financial system.

Speaking on RTÉ Radio, Mr Begg said that he was surprised by Mr Lenihan's comments.

Mr Begg said that previous finance ministers had actually praised the process.

ICTU and SIPTU President Jack O'Connor has strongly criticised Mr Lenihan's comments.

Mr O'Connor said: 'Minister Lenihan is now attempting to divert attention from the responsibility he bears for the present mess by scapegoating the so-called 'social partnership' process.

'Yes, there were pay increases during the boom years. Yes, they did reflect the bubble. Yes, they did play into it - but they did not cause it.

'That was the exclusive responsibility of the bankers, the speculators and the developers who hugely enriched themselves as a result of the Government’s policy failures.'

Fine Gael Enterprise Spokesman Richard Bruton said he agreed with the criticism of Social Partnership.

But he said it was disingenuous to blame Social Partnership for failings in the Department of Finance.