This has been a bad week for the Irish public sector worker - we have been collectively hammered in the harshest most divisive budget in my memory at any rate. With taxpaying workers, it solely targeted the public sector for cuts, and despite the one day strike on November 24th and subsequent attempts at resuscitating union-government Partnership talks - which broke down at the 11th hour - there was an inevitability that nothing would make a difference and the decision on slashing pay was a fait accompli. There has been an increasing divide and rule fomented by the right - government and the employers bodies like IBEC and think tanks like the ESRI - in recent months to drive a wedge between the public and private sectors. As Joan Burton TD, Labour's finance spokesperson, said in her response to the budget, the low-paid public sector cleaner will constantly be reminded they are lucky to have a job and no doubt we'll all be reminded of this fact frequently in the future. Do we have to be grateful and not demand any more than the crumbs that fall from the private sectors' conspicuous absence of pay cuts? There was no increase in income tax which meant that the private sector felt no pain in the area of pay cuts, only the same as the rest of us in the carbon tax and other general increases like the drugs payments. All this to raise €4 billion, a fraction of the €54 billion given to bail out the banks but this time falling on those unable to circumvent the blow.The budget targeted not alone the public sector for this unfair and unbalanced hit, but also hit the most vulnerable - social welfare recipients, child benefit, and carers - all had cuts to their payments except for the pensions paid to over-65s. The government learned to their cost last year that hell hath no fury like a pensioner with a grievance after they tried to remove the universal medical card for the over-70s in October 2008 budget - arguably the worst PR move since Garrett Fitzgerald's Fine Gael collapsed the government in 1982 over the proposed VAT on children's shoes. The jobseeker's allowances (dole) has been halved for the under-21 year olds, and reduced for under-24s. Those on disability and other long-term benefits will all be hit, and the universal child benefit paid to mothers - historically to give them a payment in their own right back in the days when women were chattels and had no right to own anything in marriage - has been cut by €16 per child. The excuse that we have generous social welfare rates is no reason to be so brutal in cutting these payments - hitting the captive audience of those on social welfare is a low blow as the cost of living is way higher here than in many other countries.
All in all, I will be down about another 6.5% direct pay cut on my gross salary. I know this will be slightly less when net income is calculated as I will have less tax and PRSI and levies to pay, but it is a real hit when you realise the public sector were hit with an obligatory pension levy back in May - for me, a 7.5% levy on my gross pay. So this year I have effectively had a 14% pay cut, which is draconian by any measure outside the IMF - in fact some of us feel the IMF taking over the government coffers would hardly be worse in their structural adjustments than the present Fianna Fáil/Green Party coalition. The IMF is trotted out like the bogeyman whenever there's outrage and uproar from people over the budget cuts, and the government thinks it can get away with anything as a result of this fear - along the lines of - if you think this is bad, what do you think would happen if the IMF took over? Well, some say 15-20% pay cuts across the public sector would result - hallo, what have we had in the past year? With income and pension levies, and this pay cut, that's exactly how much we have taken. So I am inclined to say - bring it on. At least it might weed out the corruption and pandering to vested interests we see in the current budget. Publicans, the motor industry and the private sector are the winners in this budget.
Did I mention the biggest joke of all? The excise duty on alcohol was reduced in order to make booze cheaper! No, this is not a clip from Father Ted or a letter to Santa written by Father Jack -it is for real - the budget saw a drop with immediate effect in the price of drink and the justification is to stem the flood of shoppers trekking to the North Face of Newry every weekend (and every strike weekday!) That the government thinks that knocking 60 cent off a bottle of wine will keep patriotic shoppers at home shows how far removed they are from reality. People shop in the North of Ireland for overall cheaper prices as Tesco, Lidl and Ikea are all cheaper there than in the south. As for the motor industry - that would be car showrooms and sales outlets - a scrappage scheme was introduced in the budget which will give a €1,500 trade-in on cars over 10 years old when a new low-carbon emissions car is bought. As most people can't afford new cars with that scrappage it will probably be totally ineffective but the car dealers are happy.
The only bright spot in an otherwise abysmally depressing week on the news front was the diversion in the form of Green Party publicity hound TD Paul Gogarty lashing out at Labour's Emmet Stagg yesterday in the Dáil in an unparliamentary outburst. He took exception to Stagg and other Labour TDs accusations of hypocrisy at his statement that the budget was unfair but he was voting with it nonetheless. It is best watched in the YouTube clip above - but you have been warned, there is no beeping out the unparliamentary expletives! Of course it lightened the day a little and he achieved his goal of yet again hogging the limelight as is his form - he has shown similar form in the past and relished the spotlight, but is generally viewed as a prat by the media and by most of the electorate at this stage, and his hectoring and heckling in the Dáil was becoming tiresomely predictable - until yesterday's meltdown brought him to a new level nearly as low as his rollover in front of Frances Fitzgerald.
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