Banks, the public service and pay
Sir, – Donal McGrath (February 23rd) states that public servants did not in any way contribute to the crash. He also supports the gradual restoration of their 2009 pay-scales.
He is correct in stating that public servants didn’t contribute to the initial collapse, but when the collapse happened, the unsustainable level of public spending, including public sector pay, was exposed. Both had grown on the back of once-off tax revenues such as stamp duty, VAT on new houses, etc. Mr McGrath doesn’t seem to think that the State needs to balance its books to function properly. Maybe he should reflect on the fact that the State is still running an annual deficit, has a national debt of €200 billion, but is facing major threats such as Brexit and impending rising interest rates.
Meanwhile the public sector wants a return to their overinflated salary packages. A return to leprechaun economics. – Yours, etc,