Resources must not be allocated on the basis of protecting the interests of the strong, powerful and vocal

The outcome of current negotiations on public service pay or on debt should not produce a situation where other sectors in Irish society will be further disadvantaged.

1. There is always a danger that resources will be allocated to protect the interests of those who are strong, powerful and/or vocal.
2. More than €800m could be saved by capping public service pay at €120,000 while having no reduction for those earning below €40,000.
3. Ireland needs a new approach which prioritises investment, promotes public services, protects vulnerable people and communities and ensures its development is underpinned by an equitable tax system.

The outcome of current negotiations on public service pay or on debt should not produce a situation where other sectors in Irish society will be further disadvantaged, as a result of the choices made and the consequent allocation of Ireland’s scarce resources. Care must be taken to ensure that Ireland is not to repeat mistakes of the past when resources were awarded disproportionately to some groups over others.

Social Justice Ireland has published a discussion paper entitled ‘Towards A Framework for Solidarity and Recovery’ which looks at the difficult current context and identifies seven key areas that need to be addressed simultaneously if there is to be a comprehensive and coherent approach to securing recovery while ensuring solidarity.  It also provides data on how more than 80% of the government’s requirement of a reduction of €1bn in public service pay could be achieved.

There is always a danger that resources will be allocated to protect the interests of those who are strong, powerful and vocal. Of particular concern at this moment is the need to ensure that all aspects of Ireland’s current multi-faceted crises be addressed in a coherent and integrated manner and to ensure that choices are made on the basis of the common good. This is why we produced this discussion document.

Social Justice Ireland believes the Government’s, and the troika’s, focus has been disproportionately on reducing the deficit. Such reduction is important and required. However, reducing the deficit by creating a fractured society, a weak economy and persistently high unemployment is not a recipe for recovery.

Ireland needs a new approach which prioritises investment, promotes public services, protects vulnerable people and communities and ensures its development is underpinned by an equitable tax system.

A Guiding Vision

 As decisions are being made within this very difficult context, a guiding vision that charts the future direction and shape of Irish society is needed. Such a vision should have a long-term perspective and act as a guide when policy choices are made. Social Justice Ireland believes that Ireland should be guided by the core values of human dignity, sustainability, equality and human rights and the common good.

A Framework for Solidarity and Recovery

If there is to be a guiding vision and the common good is to be protected then a balanced framework is needed within which decisions can be made.   Social Justice Ireland believes such a framework should address seven key issues: public sector reform, taxation, public service pay, investment and competitiveness, public services and public expenditure, debt and governance.

Public Service Pay

Social Justice Ireland analysed the savings for the exchequer if a ceiling of €120,000 a year were introduced for all public servants while no reductions were applied to public servants whose pay, including allowances, is less than €40,000. The analysis uses a scale whereby the reduction starts low and rises thereafter so that bigger reductions are applied to higher pay.   For public service pensioners there is an absolute upper limit on public service pensions of €60,000 while those on pensions of €40,000 or less would be exempt from reductions.

Substantial savings would arise from this approach.  Gross payroll savings of some €775m would arise from serving public servants and a further €47m from public service pensioners giving a total of €822m.  (cf. Appendix 1 of the Social Justice Ireland publication, pp. 19ff) 

Need for another approach

Since taking up office the current Government has introduced two Budgets – both of which were deeply unjust, regressive and socially divisive. They hit people on low incomes, including the working poor, more than they hit the better off. Economically they failed to address unemployment. They provided neither a vision nor direction for the country. This situation must be changed fundamentally