Quinn warns about pay rising to public-sector levels

Seanad Report:   If an attempt were made to increase private-sector pay to meet that of the public sector, we would be setting…

Seanad Report:  If an attempt were made to increase private-sector pay to meet that of the public sector, we would be setting out on the road to disaster, Feargal Quinn (Ind) warned.

Contributing to a debate on Social Partnership, Mr Quinn said that the big lie about the benchmarking process was that there had been a gap between private-sector and public-sector pay.

"We now know that that gap simply didn't exist, and that as a result of benchmarking a gap has been opened up in the other direction.

"If we try to close that gap by increasing private-sector pay to meet the public sector, we are setting out on the road to disaster. We must address the situation from the realistic standpoint, which is that public-sector pay is now already too high," Mr Quinn said.

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Public sector pay levels, when account was taken of pension benefits, were now way ahead of pay levels in the private sector.

"So much so that we now have private-sector unions, like the bank officials' association, clamouring for an adjustment that will close this gap. If we go down that route, we can throw out the window any pretence at staying competitive.

"The only sensible way forward is for private-sector pay to be related to competitive considerations, and for public-sector pay to be approached on the basis of comparability with what is paid in the private sector. What we need is a kind of bench-marking in reverse, if you like," Mr Quinn said.

Government chief whip Tom Kitt said that as it entered the new talks process the Government shared many of the concerns raised by the social partners and was anxious to address them.

"As employers we, of course, also have our own agenda based on the continuing need to make progress in modernising the public service.

"We will be negotiating on a full agenda of improvements in this area focused on achieving more responsive and better-quality customer services; better management of performance; better financial and human resource management; and greater flexibility and openness to change."

Derek McDowell (Lab) said he would never advocate the introduction of work permits for those coming here from the new EU states. Nevertheless, we had to ensure standards were maintained within the labour market and that, in the first instance, Irish workers and standards of employment were protected.

"And if that required - frankly - introducing further restrictions in two or three or four years' time, then I would not shirk to do it," he said.

The body dealing with the upholding of advertising standards should be empowered to impose fairly severe financial sanctions for the type of recently seen advertising which was seriously insulting to many of the Christian faith, Jim Walsh (FF) said.