Madam, – Political editor Stephen Collins appears to confuse Government press releases with policy requirements (Opinion, June 4th).
Writing about a proposed property tax and cutting the wages of low-paid workers covered by Joint Labour Committees, he claimed: “They are vital pieces of the jigsaw required to bring the economy back to health and they are also conditions of the EU-IMF programme.” The property tax to one side, Mr Collins is entirely in the realm of speculation and conjecture when he claims cutting already low wages is necessary to restore economic health.
In fact those arguing for cuts have yet to produce a single piece of evidence to support the case.
His assertion that a wage cut is a condition of the EU/IMF programme is wrong. The EU/IMF programme very specifically called for a review of the Joint Labour Committees/Registered Employment Agreement wage-setting mechanism. That review has been carried out. It concluded that job creation would not be helped by cutting pay or dismantling the system. In fact, it warned of possible negative economic consequences arising from such a move.
As for his later assertion that Ireland would be bankrupt otherwise, I fear that may already have happened. And it had nothing to do with low-paid workers earning a few cents above the minimum wage. – Yours, etc,