Dáil debates

Wednesday, 10 February 2010

Public Service Remuneration: Motion (Resumed)

 

8:00 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)

Last year, I issued a statement arguing that public versus private sector was not the solution to our problems. However, as I am not a celebrity Deputy, a guru or an economist but just a straightforward on-the-ground-Deputy it was not covered much. Maybe someone will cover it this time.

At the time I made the point it was hard to persuade those in the public service, particularly those on lower pay, that they were responsible for the country's economic woes. Levies were introduced and we were being dishonest with the public sector, telling them they would have to pay the piper. At the time we were in the throes of protecting the banking sector and keeping financial institutions solvent, a point with which no one argued. The manner in which such moves would be funded, overviewed and how those who caused the problems would be held accountable were being discussed.

However, it was decided we would make the public sector fully responsible. For years Fine Gael called for public sector reform but it was not quite as simple as just pay cuts. The body for higher remuneration from 2000 to 2008 saw it fit to reward those on higher pay in the public sector, including the Taoiseach, Ministers, county managers and others, with a rate of pay increases that far exceeded those given to the lower paid.

The Government amendment takes into account the net decrease to those on higher pay has far exceeded those on lower pay but forgets performance pay has become part and parcel of salary increases. I do not know what a higher civil servant had to do not to get his or her performance bonus. It seems one would have had to have made a major boo-boo and be an embarrassment to one's position before one was denied a performance bonus. To use the performance bonus as an excuse for not cutting salaries in the higher services smacks of unfairness. The Minister for Finance said on the budget day that we have turned the corner because the straws in the wind from abroad indicated a coming out of the worldwide recession. However, it was somewhat premature and most certainly so in the case of Ireland. No matter how quickly other parts of Europe come out of the recession, Ireland will be in the last three to emerge from it.

Ireland has been cushioned by two factors. First, there has been negative inflation except in public service costs which have risen over the past year. Second, interest rates are low. However, as sure as night follows day, serious pressure will emerge for interest rates to go up to prevent the main eurozone areas getting carried away with positive growth figures.

It is delusional that those on the higher and protected public sector salaries should be given a softer landing on basic pay. On Monday I was informed of a young woman working with Wicklow County Council planning department who was paying €800 a month for child care for her two children. She has taken a 25% pay cut and, as there are less planning applications, overtime is very much denied to her. Her husband, a private sector worker, has also taken a 25% pay cut. Their basic costs have continued to rise, however.

I will give the Government one credit. Whoever writes its amendments to our Private Members' motions is a creative genius. Will the Minister of State, Deputy Mansergh, let us know who it is?

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