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Dublin: 11 °C Thursday 20 June, 2013

Public sector pay increments should be deferred, says Varadkar

Freezing pay increases could save up to €200 million a year, he said, but admits would be in breach of Croke Park Agreement.

Leo Varadkar, Minister for Transport, Tourism and Sport, admitted any deferment would breach the Croke Park Agreement
Leo Varadkar, Minister for Transport, Tourism and Sport, admitted any deferment would breach the Croke Park Agreement
Image: William Murphy via Flickr/Creative Commons

THE PAYMENT OF increments to staff in the public sector should be deferred for a year, the Minister for Transport, Tourism and Sport Leo Varadkar has said.

Freezing pay increases could save up to €200 million a year, he told NewsTalk Radio, a significant sum in a year in which the government needs to find €2.25 billion in savings leading up to the next budget.

“I certainly wouldn’t begrudge anyone their increment but its very hard to justify giving anyone a pay increase in the year ahead while we’re cutting services,” he said.

“That’s a big saving, and one that doesn’t hurt anyone because they’re not worse off.”

Although he acknowledged that core pay was protected under the Croke Park Agreement, he said that the Agreement also said that there would be no pay increases – meaning increments:

were a kind of a grey area in that sense.

Unions reacted angrily to any suggestion that pay increments would be frozen.

Speaking to TheJournal.ie, the head of the Irish Nurses and Midwives Organisation Liam Doran said that there were no grey areas when it came to pay increments.

“The Croke Park Agreement doesn’t speak of core pay or basic pay. It talks about pay rates. We would view increments as part of this, therefore they are covered and protected by the agreement.”

He said that any freezing of increments would hit lower paid public servants hardest, as those in management are often not subject to increments.

“All lower grades from clerical officers to staff nurses and entry grade prison officers are subject to incemental scales, whereas those appointed to management grades are often appointed to the max of the scale.” He added:

They would be unaffected. That in itself would make and deferment of increments unfair.

Should the Croke Park Agreement be renegotiated >

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Comments (117 Comments)

  • Didn’t hear the bold Leo speaking out when the staff in Kenny’s office received a 3% increase a couple of weeks ago. Reads a bit like double standards to me. Possible because those who got an increase in Kenny’s office were all appointed by Kenny different standards apply. Maybe be you could ask Leo on his thoughts on those increases Mr. Clarke?

    Reply
    • Varadkar needs to look after his own brief first, 79 million on pointless speed limit signs.
      A truck load of concrete put down an 80km sign outside our house on a 90 degree turn on narrow bog road full of craters, same all over the place

      Reply
  • TDs should have their exorbant salaries halved days Ryan O’Neill!

    Reply
  • I’m a public servant and Claire Daly TD claimed more in expenses than I got in wages, address that minister veradgar

    Reply
    • Claire Daley is also a public servant in her role as a TD. One person made the decision to give you a job, while thousands voted for her to do her job. This “I’m a civil servant and I’m entitled to” attitude is disgusting when there are innocent children in this country going to bed cold and hungry every night.

      Reply
    • Ann what planet are you on? you say there are children going to bed wet and hungry and its public servants faults but in the same breath trying to justify a back bench politician who is supposedly fighting for the poorer people and who claimed nearly ?40000 in expenses last year on top of her wages of nearly ?100000, maybe she’ll cloth them children, and she’s only one of 150 politicians not to mention the seanad and councils

      Reply
    • Guess I should give up with the sweeping generalisations too – slaps own hand.

      Reply
  • Howlin the Smoked Salmon Socialist has said he and his cronies won’t be taking a pay cut, so all those extra expenses have to be found somewhere. Let’s take it from the nurses, SNAs, social workers, gardai and clerical officers instead!

    Reply
    • If any body thinks Brother Howlin will go down that route they are sadly mistaken as their 15% poll rating would drop to single figure with out union support.nInteresting times ahead with trouble at mill lad big trouble

      Reply
  • I think most people would prefer a deferment to a pay cut any day

    Reply
  • I really think Leo should lead by example on this.

    Why doesn’t he defer his ministerial pay and pension and take the regular TD salary? It’s not like he’ll be destitute on that amount.

    Sure the country is broke, we can’t be affording any Minister for Transport, Sport and Tourism. Leo seems to love a cutback so I’m sure he can start at home.

    Reply
  • I may be missing something but what exactly does Varadker got to do with public service pay ? Or is he just the gimp they bring out to make all the announcements the others are too afraid to make?

    I can just imagine the conversation in the Dail;

    Enda to Noonan: jaysus lad we’re gonna have to do something about the public service wage. We better announce it now so it won’t be such a shock.

    Noonan: Well I’m not doing it! Is Phil around he might do it?

    Enda: No Michael, he’s in enough 5hit with the septic tank thing. I know ( in his best Tarantino esqe voice ) Bring in the Gimp!!

    Reply
  • Remind me again Leo exactly which Dept/s you were made Minister for? Maybe I’m being picky but it appears you are Minister for everything but master of SFA!!

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  • Public sector are being hard done by here and it’s unfair for Leo to claim “I don’t get paid for Sundays, I do them for free”. Not that I need to remind anyone but Leo is on multiples of what people who get increments would be paid. On top of that he is paid a salary to do work, whatever the hours, most of these public servants are paid on a time basis so it’s like comparing apples with fecking turnips and Leo knows it. As much as he boils my blood, sometimes I admire how he speaks his mind, but what he’s eluding to here is just dopey and he knows it!

    Reply
    • blah! 25/06/12 #

      Yip he does speak his mind. A (low paid) civil servant friend of mine, at christmas, ran into Leo in a city centre pub. She had words with him regarding how the ( then proposed) household charge, on top of all other cuts/charges was making life unaffordable. She said Leo’s answer was “well you can afford to be out here”.

      Reply
    • Yeah Diarmuid, Leo knows it alright
      Why is he even commenting on this anyway – it is outside his remit as a minister.
      Either he has ambitions outside his ministry and is talking about stuff he isnt supposed to, to gain some sort of advantage as a leader elect – or the media people behind Kenny want him to say the crap stuff so Kenny wont have to. Either way, Leo is a twit

      Reply
  • Just another thing that should be pointed out. Leo has said on numerous occasions that there should be no income tax increases and we are all aware it is also a FG policy not to increase income tax as (in Leo & their words), a tax on work is a disincentive to work.

    So, correct me if I am wrong but who in their right mind would want to do a night shift or a shift on Christmas day or on the weekend etc etc etc, if their pay was the exact same as doing regular hours. Leo’s notion therefore is to disincentivise out of regular hours work for our most critical services, ie. Doctors, nurses, Garda etc.

    Does that not sound a but strange Leo no? When we’re all at home tucked up in bed Leo expects nurses to care for the sick and elderly for the same wage as someone who’s home every evening in time for the 6 o clock news. It’s just a crazy notion and as a private sector worker and small business owner I for one am not falling for Leo’s BS and I would hope we would all show solidarity with the frontline staff Leo is trying to pick at. I am not a fan of Croke Park and I am always complaining about the Civil service (rightly in my opinion) but this is just manure by Leo and I hope no one falls for it!

    Reply
    • Yeah Again Diarmuid -
      Do people understand what the rigours of working night shifts looking after people does? How you get physically sick from workng nights and then changing back to days on your time off so you can actually see your kids ( very much like jet lag) While my wife has to deal with the kids alone at night while Im at work, and look after them around her own job while Im asleep during the day, and Leo and Brendan are trying to take away the extra money i get for doing that?

      The people i look after simply wont survive if nobody is there. What are you going to do if we dont want to do it anymore, and why should i risk dying early from the strain of night shift work? (studies suggest night shift is bad for all sorts of illnesses – strokes, cardiac problems yada yada yada and as for our knackered backs….)
      Garda, Paramedics, Fire crew and many other nurses make these sacrifices – and expect not to be in the poor house after saving people on a daily basis with our qualifications we have earned over many years.
      I know the civil service you complain about Diarmuid isnt us – and i will agree with you on that (there has been enough said about the huge numbers of pointless admin and executive staff. Its plain as day that these people are the problem – why wont anybody fix it?

      Who is going to be brave and smart enough to do the chop chop on those wasters. Leo isnt going to and the rest just arent up for it

      Reply
    • Totally agree Dave, my problem has always been with civil service, back office staff who never seem to be short staffed or overworked yet frontline staff, the staff that the health service, the Garda, the education system should be based around are always struggling. It’s infuriating as a member of public to see 2000hr staff in the hse yet see wards being closed down. That’s why I firmly believe Croke Park needs to be ripped up. Not so frontline staff can suffer more for a job they do for no thanks, a job mind you I reckon I would simply not be able to do, but so the waste and bureaucracy can be eliminated and targeted and those truly serving the public can be rewarded and have their load lightened. That is also my problem with unions, they protect the wasters as much as they protect a nurse who works nights and has to hold peoples hands as they die simply because they pay a subscription. There’s no resemblance of fairness or public interest in what they do!

      Reply
  • this is a tried and trusted ploy used by this and the previous administration, well pointed out by an earlier contributor. Theres no point in turning on each other, we all know why we are in this mess, who got us there and who is continuing with the same failed policies. Lets not forget. I have worked in both sectors, at home and abroad, and honestly, there are pros and cons to both that balance out pretty evenly.

    Reply
  • Varadkar cant hold the laughter in since he nailed his big salary and pension.

    Europuppet.

    Reply
  • Get the Irish workforce at each others throats !! There must b a big announcement soon !!

    Reply
  • elaine 25/06/12 #

    As a public service worker I am on point 3 of the pay scale, according to my length of service I should be on point 6, but due to cutbacks I was automatically deducted 10% of my wages before I even started employment, knocking me back down the scale. I am waiting patiently for my increment which will only minutely increase my fortnightly wage. I’m about to start a masters which is costing me a large amount of money and will put me to the pin of my collar for the next two years but is necessary if I ever want to move beyond my current post. Increments for frontline staff at least, are the only minimal reward for working in conditions which are over stretched and under resourced.

    Reply
  • lyn 25/06/12 #

    As a public servant who earns less than 27k… Yes that 27k… A year, how much if a pay cut or deferment should I get! I rely on my increments to help me bring in money that will feed my family and keep a roof over our heads as there are no opportunities to advance in my job anymore! I wonder could our td’s and minister survive on my income!

    Reply
  • typical….take more pay off the public sector, the government can’t think of any better ideas on how to gather in funds, maby if they listened to those who work in the public sector they would get some tips, for example….what a waste of money they have spent planning a new children’s hospital in the middle of the city that was bound to fail (would you get planning permission In your estate if you wanted to build a 50 story extension onto your house, in a street that is made up of 2 story houses…..no) how the hell did the government think they would get permission for that high rise hospital…..and their still pumping money into it!! well while you guys are discussing how much pay us public sector should get cut….we who work in the frontline shall still be working days, nights, weekends, Christmases, new years, Easters, bank holidays….saving the lives you love and comforting those who we couldnt save whilst holding back tears, working 13-15 hour shifts with sometimes very little breaks, an very little resources….as the government decided we don’t need them….but still we continue on, when you need us were there, and yes the pay is crap, but the cause is worth it, theres too many people out there needing help, and the dail don’t see that, their all about the money…take it from the public sector and take it from the vulnerable people in our society as those are the easy targets. there are definitely better ways to get money, ie ministerial pay cuts!! will be interesting to see where this new hospital will go, what a waste of money so far! oh and if anyone gets admitted to hospital tonight expect a long wait as the government has probably shut down the ward you could have stayed on!! how nice of them….

    Reply
  • Freezing Leo Varadkar would do a lot to reduce global warming with all the hot air that he spouts

    Reply
  • blah! 25/06/12 #

    I’m a public servant and in 2021 I will be earning the 2012 average industrial wage. Unless Leo has his way.

    Reply
  • I despise this man/boy everytime he opens his mouth i want to ram my Fist
    down his throat! whoever voted for this wa&*ker wants there head looking at!

    Reply
  • Nivek 25/06/12 #

    Agreed am also public sector worker earning less than 30k and rely on these increments in my case it’s not a whole lot but I do need these and work hard for them through long hours,weekends and nights!

    Reply
  • Can someone explain to me why the working men and women of Ireland are always the ones targeted for cuts?? Yes they earn more money but they also have far higher expenses than people on the dole and come out with considerably less disposable income at the end of the week in most cases.nFar too much of our workforce are choosing the dole because they are better off on it. Are the government not just biting the hand that feeds it by punishing the public sector (again), if it happens,who were the worst off for the most part during the good times aswell don’t forget. Vital services are needed and without them the country won’t function.nI’d love to see how many public sector staff have quit their jobs in Ireland in the last 12 months most of whom youll find are under 35 aswell i dare speculate.nSurely in the long term this is only a bad thing and meanwhile the pay of ministers, td’s and bankers aswell as retired ministers insanely big pensions won’t be touched.nThis country is never going to recover from all this madness…

    Reply
    • John, its easy
      The government sees the working men and women in Ireland as their sheep to be profited from while their inflated heads are the elite who are entitled to power because they were born into a political elite, or because they were in opposition for so long
      (because they couldnt win against FF even when everybody knew FF was properly corrupt – they had to wait till FF totally imploded before they could come anywhere near government)
      its ‘now their turn’ I dont think these arseholes are even in it just for their pensions etc ( if they had any sense they would, but they dont seem to show much of that)
      Its the power they think they have they are after, and they are convinced they are entitled to it.
      This is much more dangerous than someone just in it for the money.

      Reply
  • anyone tell me why we’ve an army and a reserve army?

    Reply
  • Sinead 26/06/12 #

    Well said Susan.

    Reply
  • D reason increments exist is because as opposed to d private sector ther are few chances for promotion ect in d public services. Especially these days. With d cost of living rising its unrealistic for pay to remain d same year in year out.

    Reply
  • Leo Var Wanke*

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  • I work in frontline emergency services. I work 60 hour weeks. I know I signed up for this job but it’s very frustrating to try serve the public when they treat you like shit, abuse you, I’ve been spat at and doing horrible unsociable hours for around 32k (before tax). It’s also frustrating being bossed around by civil servants in admin who take the piss, and have numerous breaks throughout the day when some days we don’t get any!nnI don’t want a pay rise or any thanks for the job I do just leave my wages alone please. I’m starting to think I’d be better off on the dole because I see the way some people abuse the system first hand and it disgusts me.nnI appreciate that some people have lost their jobs and are looking for work but it’s the people who have never and will never work a day in their lives! The social welfare should be reassessed. People who have never made an effort to work should be cut completely down. Then maybe the carers and people who deserve it could have a better quality of life!n

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  • Increments seem to be a fair target.

    But the problem with across-the-board pay cuts is that it demoralizes everybody, so there’s an morale impact that tends to cancel out the savings. Surely there are better ways to tackle this?

    Reply
  • Leo should focus on his brief.
    79 million spent on pointless speed limit signs already and more meddling on the way
    He’s a total incompetent

    Reply
    • There are “wrong” speed limits all over the place – don’t just take my word, ask Conor Faughnan of the AA. Varadkar is supposed to be doing something about this, after all he is the transport Minister (believe it or not), but instead the speed cameras are regularly sent out to catch road users at those places where the limits are patently wrong. It’s all part of this governments revenue collecting and has sweet f.a. to do with road safety. Look out for the speed camera van on the N4 inbound just before Liffey Valley. 3 lane dual carriageway, 80 kph limit.

      Reply
  • Remember this when the blue-shirts come looking for your votes –
    http://www.youtube.com/watch?v=5LTCT7QIeP8

    Reply
  • Speaking as a civil servant on less than €35k myself, I think anyone in the civil and public service earning over 40k should be made take a pay cut, the percentage of the paycut increasing as the salary increases.

    Reply
  • I have to work harder, longer and faster to get any kind of promotion or pay increase. I might sound ignorant but do public servants get pay increases for doing the same job they did last year just because they hung around long enough? Please enlighten me.

    Reply
  • Anyone on 40-60k….10% cut…..60-90k….25% cut…..90-120k….30% cut…..120-150k…40% cut….Over 150k…50% cut, thats for all Civil Servants, TD’s, Ministers, Advisors, everyone paid out of the public purse….!!!

    Now that would be a start….!!!

    Reply
    • Neil 25/06/12 #

      Sounds fair to me, but will never happen. Ministers and senior civil servants are not turkeys who will vote for Xmas.

      Reply
    • By your well thought out of solution; person A earns 59,000 euros a year – gets a 10 % pay cut and brings their salary down to around 53,100. However, person B earning 60,000 euros a year gets 20% and bring their pay down to 48,000 euro a year. By golly there’s an incentive to work hard, try for promotions and up skill.

      Reply
    • Sound good but your Maths doesn’t make sense you’d be better off on €59,000 getting a 10% paycut of €5900 leaving you on €53,100 than you would be on €61,000 getting a 25% paycut of €15,250 leaving you on a wage of €45,750

      Reply
    • Another 10% percent off frontline staff…?? You haven’t a hope…

      Reply
    • howzat 25/06/12 #

      Insane and stupid

      Reply
    • and all social welfare 50% as that’s from publics purse.

      Reply
    • Brendan – are you for real. You seriously think that the OAP, carers allowance and invilidity pensions should be cut by 50%. You think that those unfortunate to lose their jobs should be targeted and punished by cutting their dole, remember, all these people paid into the public purse with their PAYE & PRSI contributions. It would answer you better to be looking to cut politicians salaries and pensiouns and a 1 man 1 pension policy should be introduced. Stop looking to take food off the table of the average Joe and instead look to put an end to those pigging out on the Gravy Train.

      Reply
    • Ann no I don’t think carers allowance should be cut or some disability allowances should be cut but yes I do think people who never contributed a cent to the economy should not get a cent in welfare and there are loads out there, I’m sick of people public service bashing when reality is the majority of us are on minimum wage, I work on average 50 hours a week including weekends and nights, have to travel nearly 2 hours to work and then 5 hours back, when I get home I care for my mother which I don’t get a penny for or wouldn’t ask for a penny because it’s my duty to repay what she has done for me, by the time I pay fuel costs and mortgage I’m broke and rely on my increments,

      Reply
    • Glad to hear that Brendan. Before I got sick I had a great career and paid tax at the higher rate and it just makes my blood boil when people make generalised comments about social welfare recipients. I have no doubt that those on the lower rungs of PS ladder are hard done by and am in no doubt that you are justified in believing that you are working for nothing. I personally dont understand why people dont want to work (I have been unable to work for 11 years and it really is not a nice situation to be in both psychologically and emotionally) and I believe that those who cant be arsed working should have their payments cut to 150 euros (which is required to live ie. pay for food, electricity and council rent) and are denied added entitlements like fuel allowance. I also believe that people like you, who are in work and also looking after an infirmed family member should be entitled to tax credits, as it takes the onus off the public purse.

      Reply
    • Yes and a 50% tax rate for income earned over €100,000.

      Reply
    • Stephen that goes without saying – wether people are employed in the public or private sector. Childrens allowance or whatever it is called these days should also be cut for those earning that kind of money and should be means tested for those earning above than the industrial wage.

      Reply
  • Dave 25/06/12 #

    I work nights, had my pay frozen for 4 years, take home pay dropped by 400 eur a month through tax increases. But that’s life because my employer is making a loss – so I cant complain because they could have just got rid of me altogether!

    Reply
  • I work in the public sector, its a doss, seriously we do f’all…..its great….

    Reply
  • Anyone in non frontline services should have to reapply for their jobs, make the application process public and lets see how many we really need.

    Reply
    • Why should they have to reapply for the their jobs ?? I’m a frontline worker but that’s a ridiculous statement…. Should every worker in the state have to reapply for their jobs?

      Reply
    • Hey Pierce, revenue have an open competition so why don’t you apply?
      http://www.revenue.ie/en/about/careers.html
      What stopped you applying for the thousands of other open competitions that have happened throughout the years?

      Reply
    • Firstly let me say my point was very badly made, so here’s what I mean. I think the public service systems are not working and are not providing the level of service which all the residence of the state expect and have paid for. If you were to redesign the system and hire people necessary to give you the services you want, I don’t think you could justify the numbers of people currently employed. Thanks for the job advice by the way but I think my current job has a bit more of a future to it.

      Reply
    • Why didn’t you apply for a “non frontline” job when there were loads of them going in the Mid naughties? Why wait til now to want to join the service?

      The application process has ALWAYS been public for full time jobs. No amount of wearing the school tie or being in the same golf club gets you a job as a clerical officer!

      Reply
  • As a public sector worker I agree with this proposal. My agency froze all increments over 2 years ago with the agreement of staff. Many other agencies have done the same.

    Reply
  • mel 25/06/12 #

    To suggest that public servants pay for there pensions over 40 years is simply not true,they contribute a very small amount towards the fund which pays them
    This pension fund is insolvent it has liabilities of 110billion and assets of 5billion if the same rules applied as in the private sector this ponzi scheme would have to be wound up
    It amazes me when public servants quote their low pay that they don’t take into account the true cost of their pension pots
    A typical retired teachers pot would cost 1million euro in private sector good lick trying to save for that in the real world ,oh I forgot ye don’t live in the real world!

    Reply
    • elaine 25/06/12 #

      Anne I was speaking re the 10% cut they put on new entrants to the public service the cut off date of which I missed by 2 months. nnIn relation to the pension fund I pay a large portion of my wages to 2 separate pension funds each fortnight, none of which I will see until I am 68 I feel I will have a substantial contribution made and will have earned my pension numerous times over.

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    • blah! 25/06/12 #

      Mel a quick calculation based on my current pension contributions, what my contribution would be at the top of my pay scale, my length of service, how much my lump sum would be, what my pension entitlement would be after i retire (over 3/4 of it would be the state contributory pension) shows that i would have to live to be 102 before I get back what I have paid in. so you are not 100% correct in your broad sweeping generalisation.

      Reply
    • Mel, your are completely wrong about that.The P.S pension IS based on forty years.I should know;this is my fortieth year paying it.If you haven’t got forty years done, then you either take an actuarially reduced pension or buy the years you haven’t worked at considerable expense.

      Reply
    • censored 25/06/12 #

      He said it is not based on 40 years of contributions ie it’s not funded by the direct contributions of the works, like the contributory private sector pensions are.

      That is a fact, and does not demean the fact that it’s part of public sector T&Cs and your have to work for 40 years to get it.

      Reply
    • Elain I am assuming so that you are entering either the nursing or teaching proffesion, both noble careers. However as someone who also went to university I did not have the luxury of knowing that a) I would get a job in my chosen field and b) I did not have the luxury of knowing what my starting pay would be. This obviously is the case for all those graduates who enter the private sector. I do however think it is disgraceful that newly qualified nurses are not guaranteed employment by the state, and the majority will be forced to emigrate.

      Reply
  • mel 25/06/12 #

    Deferred me arse just stop them and why do they get tax free lump sums just for the privilege of having a job for 40 years ?
    Private sector workers would at the chance of job security without any of these perks
    Time to get real your employer,the state is bankrupt

    Reply
    • So you just want to target the younger workers then?

      Reply
    • Wonderful. With a few trite sentences, IBEC’s spokesman Varadkar has private sector and public sector workers at each others’ throat again.
      No wonder he and his banker friends – who of course are getting increases – are laughing their heads off. You fall for it every time.

      Reply
    • Pensions and lump sums are paid for over a forty year span by contributions which are compulsory.(you cannot opt out) The rate used to be 61/2 $ of gross but due to the P.S P.L. is now around 15%. It is a contractual entitlement which can’t be abrogated legally as P.S. pensions are covered by exactly the same pension law that applies to all pensions.

      Reply
    • What job security are you referring to? Leo wants redundancies, and there is no job security if they can keep cutting people’s wages. I would gladly employ you and give you a job for life but I won’t pay you anything but you’ve a job for life! Now that’s security

      Reply
  • lyn 26/06/12 #

    Really well written Susan!!

    Reply
  • mel 25/06/12 #

    You have a job ,in what way are you being targeted if u don’t get an increment ,let’s call it what it is a pay increase ,or maybe us prefer that the unemployed and SNA’s are cut first

    Reply
    • yes unemployed should be cut, the country is a joke when people refuse work as they would be better off on dole, but let’s all jump on public sector bashing bandwagon without knowing facts

      Reply
    • Who refuses work? 4% unemployed through the boom! Now 14/16.% who doesn’t want to work?. It’s easy to nit pick SW recipients when a small minority 4% didn’t work when there was plenty of work about! Now there’s a lot less and it’s somehow all their fault.nn€1.5 unsecured bond holder payment(s), that was not legally binding, is still being paid to Anglo. Yes it’s all the SW fault, I can see that working 25 years people should have €10 a week! Ridiculous

      Reply
    • Ehhm excuse me lads but less of the 4% of the population dont want to work. That 4% includes OAPs, carers and those unable to work because of ill health. Please dont lump us all in with the career spongers.

      Reply
  • mel 25/06/12 #

    Brendan what planet are you on are you seriously telling me that a garda r teacher would have contributed 1 million euro to their pension over 40 years get real

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    • Mel,P.S. pensions are pay as you go, i.e. there is no pension fund which is paid into.An imputed figure mentioned by you is based on actuarial assumptions which may or may not be valid.What I do know is I have been paying for my pension all those years and if that money had been invested in cash funds it would now be a very large sum indeed.Actually Ernst and Young did an actuarial report on the P.S pension around ten years ago and concluded that it would pay for itself unless you lived to a grand old age.Another actuarial report , the Trident Report,was commissioned by the teacher unions into the payments of teachers on the new lower scales and concluded that these young teachers would overpay for their pensions.

      Reply
    • blah! 25/06/12 #

      A rough calculation based on the TUI Teachers Common Basic Scale wef 1/1/10 would indicate over a 40 year period, he or she would have paid enough pension contributions to cover their lump sum and 11 years pension entitlements. And thats just pay as you go.

      Reply
  • Neil 25/06/12 #

    Let’s face it, leaving the Euro is the only way PS pay will be put at a level that does not require borrowing billions.
    It’s a sledgehammer to crack a walnut, but it may end up the only way to cut through all the guff. Leave the euro, pay the PS in a currency worth half as much. Budget deficit slashed.overnight.

    Reply
    • I have to ask, Neil. WHAT is your problem with the public sector?!

      Reply
    • Neil 25/06/12 #

      18 billion in borrowing Sara. Social Welfare shoudn’t be cut so PS pay has got to come down. Can’t borrow at that rate for long. Nobody will keep giving us that amount of money.

      Reply
    • And how will you maintain even a semblance of services like that Neil?
      That comment is idiotic

      Reply
    • This country will only move forward if education, health and garda resources are maintained or improved. Otherwise you just end up with a shiteload of far bigger problems down the track.
      You gotta see past that 18 billion you keep bringing up ad nauseum

      Reply
    • So, Neil, let me get this straight. You’re saying PS should be cut, even though it already has been, but social welfare shouldn’t, even though it’s probably the only form of income in the state (bar politicians pay) that hasn’t yet been touched?
      Are you on social welfare by any chance?!

      Reply
    • Sara, you’re just wrong there sorry, social welfare has been cut!

      Reply
    • Apologies then, diarmuid. But it still doesn’t support Neil’s theory that SW “shouldn’t” be cut but PS pay “should”.

      Reply
    • The reason Sara is that social welfare is supposed to be a last resort of social protection – ie. in theory while lower paid PS might quite rightly feel aggrieved at their pay being cut, the vast majority of social welfare recipients are a lot worse off. Many have to survive on € 186 a week, a pretty impossible task in any economy, never mind ours. I am not saying I am for either being cut more, I would like to rip up Croke park and get rid of waste in civil service and quangos and actually hire more frontline, but gun to head I am cutting PS first. Both need reform really but as we know unions and politicians are too brainless to see that and carry it out in a meaningful way.

      Reply
  • mel 25/06/12 #

    Brendan who commissioned these reports,you really are deluded to say that teachers would overpay into their pensions
    Tell me this Brendan why does the pensions board not apply the same rules to the public sector pensions as to the private sector ,I’ll tell you will I because they are insolvent!

    Reply
    • Mel, the Ernst and Young one was commissioned by Dept. of Finance and as I already mentioned the Trident one by the teacher unions.Incidentally, neither have been challenged since they are reputable companies using industry standard techniques and assumptions.

      Reply

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