Warning of collapse in services

SPENDING CUTS:PUBLIC SERVICES will collapse if the Government goes ahead with plans to reduce exchequer spending by €4 billion in the forthcoming Budget, the general secretary of the Irish Congress of Trade Unions (Ictu), David Begg, has said.

Addressing Siptu’s biennial conference in Tralee yesterday, Mr Begg said there were no circumstances in which such levels of cutbacks could be achieved without it having catastrophic effects on the whole civilised standards of society.

Mr Begg again urged the Government to tackle the problems in the public finances over a longer period of time. He said that French president, Nicolas Sarkozy, had unilaterally extended the timeframe for his government to deal with its financial difficulties.

“You cannot crucify people by forcing this adjustment in such a short period of time,” he said.

Mr Begg also maintained that people would have to get something in return for sacrifices made in the current economic difficulties. Mr Begg said a social dividend was needed which would cover pensions, progressive taxation and above all jobs. He also maintained that protection for people facing mortgage difficulties was required.

“There are 35,000 people who will be at risk in terms of retention of their houses next year and we cannot leave that untouched,” he said.

Mr Begg said he failed to understand why the Revenue Commissioners had not gone after the large amount due in outstanding taxes.

“It is a matter of public record that there is €1.8 billion of uncollected taxes in the system at the moment. The Revenue Commissioners must rigorously go after that. You cannot go after ordinary people for more taxes and more costs until you collect what is legally due to the State from the people who have the most.”

He said he was absolutely shocked to see that the health system was owed about €174 million by private insurers for accommodation in public hospitals.

“What is the justification for leaving that money uncollected and what is the justification for not going after the cash that was made in the boom.

‘‘Believe me, not all of the people who made money are now broke,” he said.

Meanwhile, Tony Traynor, president of Siptu’s Fás branch, said staff in the training agency felt very angry and betrayed at the actions of a few who had sullied its reputation.

He said that every day Fás workers like all public sector workers went to work to help people in this country.