IRELAND OECD calls for PS jobs
to go The Organisation for Economic Co-operation and Development (OECD) has called on the Irish Government to cut the number of Public Servants on the State payroll and slash their salaries as well.
The call was made as the Government was already looking at a three- to five-year restructuring of the Public Service, involving reduced numbers, new reforms and productivity measures as an alternative to pay cuts.
It indicated, however, that “bridging mechanisms” would be needed next year to cover the gap before the savings would take effect.
The possibility of such a two-stage alternative to pay cuts emerged at talks between Department of Finance officials and trade unions on the Government’s plans to cut the public sector pay bill by €1.3 billion ($A2.10 billion) next year. Unions are seeking an alternative to cuts in pay for the 300,000-plus staff on the State payroll.
Representative of the Irish Nurses Organisation, David Hughes said that as part of possible scenarios Department officials had spoken of a plan for restructuring and savings. He said that even with such a plan the Department would have to address the situation in 2010.
He said Department of Finance officials had suggested that some of the bridging mechanisms could be “permanent in nature while others might lapse”.
The Government officials indicated that as part of any restructuring, cuts in numbers would not be enough and productivity improvements would be needed too.
Commentators believe that to save €1.3 billion in savings, the PS workforce would need to be slashed by 30,000.
The OECD has forecast that the Irish economy will shrink by 2.4 per cent in 2010, an estimate worse than expected since its original prediction was a 1.5 per cent contraction.
The report also points to falling prices and private sector wages and calls for cuts in unemployment benefits and better measures to prevent people becoming long-term unemployed.
It also says Ireland’s minimum wage of €8.65 ($A14.10) an hour is high, and should be reviewed annually.
The report also targets health spending, class sizes at secondary schools and calls for the reintroduction of third level tuition fees.