THE GOVERNMENT’S decision to reverse pay cuts for high-ranking civil servants has encountered strong backbench opposition within Fianna Fáil.
At its parliamentary party meeting last night, some 15 deputies and Senators expressed strong criticism of the decision by Minister for Finance Brian Lenihan to reduce dramatically the cuts of between 8 per cent and 12 per cent announced in the Budget for people employed at this level.
There are 220 public service employees at deputy secretary and assistant secretary level.
The salaries for this cohort prior to the budget ranged from some €134,000 to €177,000 per annum.
In a circular issued immediately before Christmas on behalf of Mr Lenihan, it was argued that those employed at those grades had already lost bonuses, worth an average of 10 per cent of salary, and that further cuts in salary would be disproportionate.
The issue was raised at last night’s meeting by Tipperary South TD Mattie McGrath, who said he was outraged by the change and completely opposed the restoration of their salaries.
Addressing the meeting, he said the fact that the bonus was considered a component of the salary was “a joke”.
“I raised the matter in the context of people on community employment schemes and on low wages getting hit while these guys are not getting hit even though they earn massive salaries,” he told The Irish Times.
“It’s not acceptable, and it’s not good enough. We cannot sell it to our constituents. It is inequitable.”
Mr McGrath’s view attracted strong support from colleagues. As many as 15 spoke in favour of his proposition to reverse it, many echoing the arguments he used.
The Minister for Finance, who was not present last night, is expected to address the matter at next week’s meeting.
The other major topic for discussion last night was the impact that the new carbon tax on fossil fuel is having on farming and the transport sector.
The tax, of €15 per tonne of carbon-dioxide emitted, has added approximately 5 cent to the cost of a litre of petrol and diesel.
Wexford TD Sean Connick, John McGuinness (Carlow-Kilkenny) and Mr McGrath raised the issue.
They sought that an approach be made to Minister for the Environment, John Gormley, who is also the Green Party leader, to be invited to the next meeting to hear their concerns.
Mr McGuinness said Fianna Fáil TDs have encountered very negative reaction to the carbon tax in their constituencies.
“We are looking for changes in the Finance Bill to ensure that the impacts the tax has on existing businesses and agriculture is minimised.
“We have asked that both Mr Gormley and the Minister for Finance attend the meeting to hear our views.
“We are looking for an understanding of the fact that it’s having a negative impact in terms of the cost base of businesses and farms. That needs to be minimised,” said Mr McGuinness.
The meeting also discussed what some members described as the inequity of commercial rates in local authorities, and especially the system of valuations, which one TD described as archaic and completely out of date.