Gilmore: FF robs incomes of public servants

FIANNA FÁIL is “looting the incomes” of public servants to pay for the mess the party made of the once booming economy, the Dáil has been told.

Labour Party leader Eamon Gilmore made the accusation after Finance Minister Brian Lenihan introduced the legislation that will give effect to the public sector pay cuts announced in last week’s budget.

At the same time as the legislation was being debated in the Dáil, public sector workers protested against the cuts outside Leinster House.

Union leaders addressing the tea-time rally warned of a concerted campaign against the cuts in the new year. For public servants earning below €125,000, the pay cuts, which take effect from January 1, will mean:

* A reduction of 5% on the first €30,000 of salary.

* A reduction of 7.5% on the next €40,000 of salary.

* A reduction of 10% on the next €55,000 of salary.

High-earning public servants earning between €125,000 and €165,000 will see their salaries cut by 8%. That will rise to 12% for those earning between €165,000 and €200,000. Those on salaries of €200,000 or more will see their pay cut by 15%.

The legislation represents the first time public service pay is being reduced since 1933.

Mr Lenihan said it was with “great displeasure” the Government was introducing the legislation, but insisted the pay cuts were necessary.

“The public service pay bill accounts for more than a third of all current spending and is the largest component in the cost of providing public services. In these circumstances, this Government has no option but to reduce public service salaries,” he said.

The minister also insisted the pay cuts were “progressive”, and pointed out the Taoiseach and the country’s two most senior civil servants — the secretaries general of the Departments of the Taoiseach and Finance — were taking cuts of 20%.

He rejected suggestions the lowest-earning public servants should be exempt from the cuts.

“Because most public servants earn less than €50,000, a progressive reduction has to be applied to all public servants’ pay if the required savings are to be achieved and no group could be exempted,” he said.

But Mr Gilmore said the pay cut was “unfair, unjust and unwise”, claiming the pockets of nurses, gardaí, hospital cleaners and others were being raided to pay for the economic problems caused by the Government.

“Those on the lowest levels of pay — the workers who are paid less than €600 per week — will see their income cut by 5% while the same budget took little or nothing from those earning more than €6,000 a week,” Mr Gilmore said.