Sir, – Colin Gleeson reports on the Minister for Public Expenditure (let’s dispense with the superfluous “and Reform” bit) “admitting” that at least a quarter of the unallocated spending in Budget 2023 will be consumed by the expected new public sector pay deal (Business, July 14th).
Why?
Ireland is not, as yet, a major energy producer. The current surge in wholesale energy prices on world markets has two major effects, in addition to the increased costs we all see in our utility bills. It is the major contributor to inflationary pressures and it results in a substantial transfer of wealth from energy-importing to energy-exporting countries.
This will result in pain for all of us and it is the major task of Government to provide help (paid for by those of us who are more fortunate) to those most in need.
The idea that all of us can be compensated for the aforementioned transfer of wealth abroad is a nonsense.
As ever, public sector trade unions are staking an early claim. They have turned up their noses at the offer of a 5 per cent increase (over and above increases already agreed) on the basis that, in this inflationary environment, the offer does not preserve the real value of their members’ wages and salaries.
There are suggestions that the Government will come back with an even better offer paid for by the usual suspects.
The Government should do nothing of the sort. An offer which has been rejected should be taken off the table and not seen as the starting point for a better offer.
I see no compelling reason why the taxpayers of this country who will not be and cannot be made good for inflation should see yet more of our finite tax revenues used to compensate all public servants for the effect of externally generated inflation. The approach of Government should be the same for public servants as for the rest of us.
Limited resources should be devoted to helping those most in need. – Yours, etc,
PAT O’BRIEN,
Rathmines,
Dublin 6.