Madam, – With the news of “Unions’ day of action to hit hospitals and schools” (Home News, October 29th), it would appear we are set for a winter of discontent in the public service.
The crux of the problem is that the Government must cut costs, but public servants say they cannot afford to take a pay cut. It appears there is no way to square this circle. But, what is driving public servants’ need for these levels of pay? The problem relates to the property boom: many public servants have massive mortgages to pay each month. The solution relates to Nama.
The Government could cut public service pay by say 5 per cent, and at the same time, using the Nama legislation, force the banks to write off 5 per cent of all mortgages, (and fix current interest rates relative to European Central Bank for a number of months), on primary residences. By doing this the argument against a public service pay cut would reduce significantly.
While this move would in the short run not be popular with bankers, even with the 5 per cent cut in the value of the mortgages they would still return a profit in the long run. In addition, such action should stimulate the property market by reducing negative equity. The private sector would benefit too from an effective devaluation of a major wage driver in the economy.
It’s national asset management and national interest management. – Yours, etc,
Madam, – It is clear that the trade union leaders in this country are determined to have their national day of action, if only to be seen to do something that may justify their six-figure salaries. I say let them strike, let them “bring the country to a standstill” (they perversely seem to consider that this would be a worthy achievement), and then the next day when we all return to work, we can review the impact of the unions’ contribution to the national crisis. A few more small firms pushed into bankruptcy? A hundred more people on the dole? Even less tax revenue available to the Government to service our mountain of debt and maintain services? With friends like these, who needs enemies? Yours, etc,