TENS OF thousands of workers took to the streets yesterday in an Irish Congress of Trade Unions-inspired “day of protest” against the Government’s budgetary strategy, particularly plans to cut the public sector pay and pensions bills by €1.3 billion in the December budget. The anger of the marchers was understandable. They are not responsible for the dire economic circumstances now facing the State. But the Government mismanaged the economy, is now broke and simply cannot afford to pay its bills. The level of borrowing for day-to-day spending is such that, should it continue unchecked, the prospects for an early economic recovery would be grim.
Transferring blame and responsibility will not serve. Every citizen has a duty, in this grave crisis, to support one another for the common good. The poorest and the most vulnerable deserve maximum protection. After that, individuals should be asked to contribute according to their means. That will mean a broadening of the tax base; the removal of tax shelters and the establishment of a more equitable system. In the meantime, however, the Government has to deliver on its commitment to the EU Commission to reduce expenditure by €4 billion next year.
Unfortunately, that will not be the end of the fiscal pain. Savings of similar magnitude have been pencilled in for further years. And everybody can expect a fall in living standards. There will be plenty of time for the trade union movement to make the case for a fairer sharing of the financial burden. What is now required is an acceptance that Ictu’s argument favouring a longer-term response to the financial crisis has been lost. Not only are the Government parties opposed to such an approach, Fine Gael and the Labour Party also support a €4 billion cut in spending.
That said, Ictu general secretary David Begg was absolutely correct when he demanded that the Government should produce a plan for protecting jobs and creating new employment. Limited resources are better invested in this manner than in funding lengthening dole queues. But failure to plan ahead and instil confidence has been a hallmark of this Government. At the same time, public sector unions are engaged in negotiations that envisage a continuing loss of contract workers and permanent positions, as an alternative to cuts in pay. The health services are shedding 300 jobs a month and other agencies are similarly affected. That tactic is both selfish and corrosive: it reduces services to the public and increases job losses. Where is the concept of workers’ solidarity in that approach?
Yesterday’s street protests allowed those involved to vent their frustration but that action will not alter the Government’s response to the current crisis. The next phase of protest will be more robust. Public service unions plan strike action for November 24th. Confrontation and anger, however, will solve nothing. Instead Taoiseach Brian Cowen and his Ministers must ensure there is a more equitable sharing of the cost of repairing the public finances.