Public’s forbearance is not a bottomless pit

THE 12 months of 2009 were probably the worst in living memory. Sure, there have been years, even decades, in the past when things were far worse, relatively speaking, but our expectations were different then and our acceptance of hardships far higher.

In a sense we were used to it and didn’t expect anything different. Now we have a situation where anybody under the age of 30 has little real understanding of how bad things can really get. The rest of us got used to the good life and are loath to have it stop but we know we have little control. Not a particularly happy thought going into the new year. However, it’s not all bad.

Whilst we would be foolhardy to think that the so-called “green shoots” in economic recovery that are being experienced in other economies will have any positive implications for us in the short term, the fact that they exist, at least, gives us some confidence that there just might be light at the end of the tunnel.

Given that confidence and optimism are important in getting us out of this dire state, it’s understandable why Minister for Finance Brian Lenihan said that the 2010 budget was the worst we should expect. This despite the fact we have three or four difficult budgets to come to get our budgetary deficit back in check. That may well have been wishful thinking but really what option did he have if he wanted to sell it? In any event our politicians are recognised for hyperbole and smoke and mirrors above most other things.

Unfortunately, he and Taoiseach Brian Cowen were not so straight up about a few other matters. Suggesting that politicians were going to have their salary levels reduced by around 20% only to row back subsequently by telling us that the reductions prior to the budget would be taken into account in the overall reduction was the opener. The daddy of them all, though, is the Government’s decision to also take prior reductions into account when deciding the reductions to apply to senior civil servants. These civil servants will remain, even after these reductions, amongst the highest paid civil servants in Europe.

Public sector pensions and indeed the lump sum tax free payments on retirement are the envy of half the world and to make matters worse the pensions of public sector employees normally based on the salary of the equivalent grade were not even touched in the budget.

In effect, they are being treated like our judiciary – we can clearly interfere in their salaries when we are giving them an increase but not if a decrease is involved. Is it any wonder that we have upward only rent renewals on investment properties? The bottom line is whether they accept it or not, their failure and that of their colleagues to do the job they were paid for went a long way towards creating the type of situation that led to this recession – eg, light regulation. They believe themselves immune from having to suffer the recession. However, they should share as much if not more than the vast bulk of folk in this state who neither had hand, act nor part to play.

So, as we head towards a new year, Brian Cowen and Brian Lenihan should reflect on their handling of 2009 and, more importantly, the implications of their favouritism towards a few, including the banks.

The ordinary taxpayer and those brave enough to run their own businesses seem to be the ones to constantly get the mucky end of the stick. The Brians would be well advised to ponder on this and ask themselves will we continue to accept the current situation whilst their friends, the banks in their ongoing greed, raise interest rates on our mortgages. It would be a mistake to think that our current forbearance is a bottomless pit. Having said all of that, here’s wishing you and yours a great new year and Damn the Begrudgers.