Three ways to deal with bailout legacy

The Croke Park talks have failed.

We should be thankful. We have avoided a near-disaster. The Government wanted to save €300m a year in public sector wages.

There are about 380,000 workers in the overall public sector. An overall yes vote would have reduced the average public servant’s wages by nearly €800 a year.

That would have been on top of two savage cuts imposed on public service wages since the financial crisis began nearly five years ago. Add to that the universal social charge, local property tax, septic tank levies, and water rates.

More and more cuts continue to rain down on us. They make extensions on the time limits to repay bailouts appear useless.

The troika were more upfront in how they wanted to deal with Cyprus a few weeks ago. They wanted to take the money directly out of Cypriots’ bank accounts.

Nobody mentions the sacred cow of corporation tax anymore. It could fill the vacuum left by the Croke Park disagreement.

The State should also legislate to reappropriate its rights to oil royalties.

A third choice might be to continue to make the repayments but to default on the interest charges. Failing that, the logical answer would be to sack both the Government and the troika.

Michael Mernagh

Raheens

Carrigaline

Co Cork