Dáil debates

Wednesday, 16 December 2009

Financial Emergency Measures in the Public Interest (No. 2) Bill 2009: Committee and Remaining Stages

 

1:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)

The point I was making before we broke for the sos was the full extent or remit of the legislation is very unclear from the Bill. I made the point in respect of those on a very low wage in a contract with a body which has a pension scheme. Such people do not necessarily have a public service pension but it appears likely they will be caught under the remit of the Bill.

I refer to one specific group of people who will be caught by the Bill and to the considerable consequences for the country. There are people in all our universities, institutes of technology and other research institutions who are contract researchers in departments at the cutting edge of the so-called Irish knowledge economy, most of whom do not have tenure. They work on contract and as a result, normally do not have pensions as such because they do not hold a permanent tenured position in the institution. Many such people are Irish and have been wooed back home. They are in a very competitive situation in respect of fourth level research.

Many such people have been brought back to Ireland in the past four or five years and, where they could afford to do so, bought houses at the very peak of the market. These are people between their late 20s and middle 30s and are shipping water. They are very bright and include PhD and post-doctorate researchers. They are very skilled and work at the cutting edge of the Irish knowledge economy. As a result of the way in which the Government has drawn up the Bill, it does not distinguish between such people and a person in the public service with a permanent, pensionable position who, when he or she ultimately retires from public service, will have the benefit of that public service pension.

In statements made on RTE this morning the Minister declared his intention to exclude such categories of people from the remit of the legislation. However, I put it to the Minister of State, that while this amendment does not deal directly with this issue, there is time for officials in the Department of Finance to check the validity of the legal points made by the Labour Party such that the Bill can be amended before it is too late.

The same argument applies to those working in home help. The Minister has confirmed that those working in the home help area will also be subject to the legislation. Such people may be part of an institution which has the benefit of pension arrangements but they may not get the pension or may be only small beneficiaries of any such arrangements.

It is very difficult to have to contrast this treatment with what is happening to those at the very top of the commercial semi-State sector. Yesterday, I gave the example of the chief executive of Coillte, who is earning in excess of €450,000. Today, the newspapers are full of examples of other heads of commercial semi-State organisations in the same happy position. They are not affected by this legislation. The Minister has promised he will hold discussions with such people because their salaries fall within his remit. The Minister for Communications, Energy and Natural Resources, Deputy Ryan, suggested this would be addressed quickly.

However, the Taoiseach and the Minister for Transport, Deputy Dempsey, have stated in no uncertain terms that they were waging a war against public servants, including people working in home help, fourth level researchers in our universities who were attracted home and people in schools on indeterminate contracts, part-time contracts and low wages. Guess what? They are not waging war with the people at the very top of the commercial semi-State organisations.

There is a further set of people about whom there is no discussion whatsoever, namely, those in Anglo Irish Bank. It is now a fully State-owned bank. According to the Minister's earlier reply, it is not even considered as a semi-State organisation. It is a nationalised bank. Guess what? The top people in this bank earn vast salaries and the Minister might be able to provide some indication in this regard. Yesterday, no less a person than Professor Honohan, the Governor of the Central Bank, stated that Anglo Irish Bank is not a systemic bank, thus upholding the view of the Labour Party since the night the bank guarantee was introduced. This bank is the cause of many of our difficulties and troubles but it is not systemic. There are people on salaries of many multiples of €100,000 working in a failed bank that has brought grief and ruin to each of the four corners of Ireland. Those affected include nurses, gardaí and everyone else who is suffering because of the budget. These people are suffering on behalf of Anglo Irish Bank.

Lo and behold, we have a Bill that proposes to cut the wages of public sector people and others paid by the public sector or who may have part-time contracts with an agency paid from the Exchequer. They will all pay this levy, but Anglo Irish Bank will not commit a red cent to it. People may refer to fairness and public servants are realistic. They realise we must try to get the economy back into shape. However, when the perpetrators of the greatest crime against the Irish economy for several generations along with their masters in Fianna Fáil are exempted from this but those who work as cleaners pay a levy or have their pay reduced by 5%, where is the fairness in that? It is completely inappropriate.

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