James Bannon (Fine Gael)

I thank Senator Bradford for sharing time with me.

The concept that benchmarking payments to the public sector are in return for improved services ignores the fact that those outside this sector, who give value for money and enhance their particular workplaces, are not eligible for these awards, although ironically they will end up paying for them at local taxation level, in the ensuing job losses, escalating property prices, decreased services and reduced pension rights.

With local authorities employing almost 13% of the 235,000 employees covered by benchmarking, how are local authorities throughout the country to find funds to pay this award? There are no prizes for the answer. The money will come out of the rapidly emptying pockets of our citizens. Citizens who are already being asked to pay refuse charges by their local authorities will see unprecedented stealth taxes in the guise of a wide range of new local charges. The local authority in my county of Longford, which has a population of 31,000, will have to raise between €1.5 million and €2 million from local taxation such as increased water and other service charges, including planning charges, which will particularly affect young house buyers, in order to pay benchmarking. With eight out of nine taxpayers not covered by the benchmarking process, we are in a strange position, where the increase to the one will be subsidised by many.

Job losses will increase dramatically, with projections putting the expected losses by the end of the year at 45,000. With the cutback in community employment schemes, it will be difficult for the unemployed or those who are displaced from these schemes to get other job opportunities in the workplace.