Pesky Public Pensions

Those pesky public sector workers.  Them and their pensions are costing us money, and we need to sort it out.

Of course their unions are going to stand up for them, they are entitled to do so.

So runs the core of the argument by Paschal Donoghue, the minister for Public Expenditure.

It is now nearly nine years since the infamous bank guarantee, and we will be paying the cost of that mistake for years to come.  That mistake, on top of a property bubble and a global financial crisis created a financial crisis in Ireland that has cost us in an obvious business level, but also cost Ireland as a society: one just needs to look at the trolly crisis in hospitals, the cutting of resources in the Gardaí, in schools, in the broader public service.

It may have got old to say this by now, but the people being made to pay for the crisis were not the ones who created it.  The ongoing cost of the bank guarantee alone was something like €60 billion euro, with the interest costing approximately €1 billion every year. And yet, despite not being the ones to cause this crisis (it’s not over as we’re still paying the costs), members of the public service are still expected to suffer penalties.

For a while now the Fine Gael line has been that the public service bill is too high, and was part of the problem. And so, the public sector took some brutal pay cuts and changes to conditions in order to help the country as a whole deal with the mess that we, as a society, were in.

That cost has proven to be huge.

  • People have died while waiting on trollies in hospitals.
  • A&E units are swamped, leading to longer waiting times with greater stress on patients and medical staff
  • School resources cut and pupil/teacher ratios increased leading to poorer outcomes for many students
  • Longer working hours across the public service, less pay, and even less pay for those unfortunate enough to get their jobs after 2011
  • Wives and partners of those serving in the Army forced to protest because the pay is so poor

And yet, even with all this, the minister decides to push the idea that the public service costs too much and that he needs to cut where he can – with pensions the focus of today’s agenda.  Yes, we’ll finally reduce the pension levy, but must find a different way to get you to pay for the pensions.  So, um, get rid of the levy so long as we can keep the levy?

For me, there’s a premise behind all of this.  That the public service is a low-value cost, that should be cut where possible.  It’s a premise that I refuse to accept.

The public service is an integral part of Irish society, and is an excellent investment.

Just look at the work done by so many people across so many different parts of the public sector.  

  • Look at how hard our nurses and doctors work
  • Look at what teachers bring to and from their students
  • Look at the pride our navy has brought us from its mission in the Mediterranean

Fine Gael has managed to dominate the discussion of public sector pay by simplifying it to basic numbers.  An effective and healthy public service is more than a simplistic stating of the blunt cost.  The cost must be understood in context, and the value of what is achieved by the public service.  There is great value in the work being done, and it is Fine Gael that is devaluing it.

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