No backbench revolt over U-turn on pay

By Paul O’Brien and Niall Murray

Tuesday, February 02, 2010

A GOVERNMENT minister has expressed confidence that Fianna Fáil backbenchers won’t revolt over the U-turn on wage cuts for a select group of high-paid public servants.

Approximately 600 public servants earning salaries from €125,000 to €200,000 were due to take pay cuts of between 8% and 12% as a result of the December Budget.

But the Government subsequently decided to take into account the fact that these public servants had already seen a bonus scheme cancelled, which had contributed a sizeable amount to their salaries.

As a result, the Government has lowered the size of their pay cuts to between 3% and 5%.

But the U-turn has been criticised by a number of Fianna Fáil backbenchers, who believe lower-paid public servants are suffering disproportionately.

Public servants earning less than €30,000 a year, for example, saw their pay cut by 5% in the budget.

The issue is to be raised at the weekly meeting of the Fianna Fáil parliamentary party tonight, with Finance Minister Brian Lenihan expected to explain the rationale for the U-turn.

But speaking on RTÉ Radio yesterday, Fianna Fáil backbencher Michael Kennedy said people earning six-figure salaries "should pay their share".

He also said he would be demanding an explanation of precisely who the 600 public servants were.

It was originally believed that the U-turn would apply to only 160 or so senior civil servants at the ranks of deputy secretary and assistant secretary.

But it has since emerged that it will also apply to more than 400 other public servants at comparable grades in the health service, Garda, Defence Forces and local authorities.

"When I heard that people from the HSE would be part of this 600 elite group, I have to say I got pretty angry within myself, because to me, people earning €150,000 or more can afford to take a bigger hit than those that are on €20,000, €30,000," said Mr Kennedy. "I honestly believe that those on high pay should pay their share of this pain."

But speaking in Cork yesterday, Education Minister Batt O’Keeffe predicted that the backbenchers would accept Mr Lenihan’s explanation.

"They’ll have a chance to have their say at the party [meeting] and Brian Lenihan will obviously respond appropriately, and like everything else, I think when it’s explained fully to the backbenchers, they’ll be quite satisfied that the decision that was taken was a decision that reflected equity for the people involved," he said.

This story appeared in the printed version of the Irish Examiner Tuesday, February 02, 2010