Government Statement in Advance of ICTU Demonstration
There is much in the ICTU Plan for National Recovery (There Is A Better, Fairer Way) that is entirely consistent with that of Government. Indeed, it is an agenda which very closely reflects the Framework agreed with the Social Partners on 28th January last.
In particular, it reflects the Government’s view that an integrated national response to the current crisis is not only desirable but essential if there is to be a sufficient impetus and coherence of approach to meet the scale of the challenge.
The Government recognise that the measures which it is taking are difficult and, in some cases, painful. The Government is also convinced, however, that they are both necessary and fair. They are necessary because it is essential that we show a credible start on the correction of an emerging unsustainability in our public finances. Failure to show that credible start means that we impact directly and severely on our international reputation among investors and, in particular, on our capacity to raise funds and on the direct cost of servicing the borrowing which we are able to undertake.
The Government believes that the pension levy which it is introducing for the public service is reasonable. It reflects the reality that we are not in a position to continue to meet the public service pay bill in the circumstances of declining revenue.
The income to be generated by the levy will reduce the cost of the public payroll and it will do so in a way which is progressive, with higher contributions being paid by those at higher levels of income. In the context of the overall adjustments which have been made in the Budget and in the balance of the adjustment package announced by the Government for 2009, and having regard to the realities of the labour market as a whole, the Government believes that the pension levy is not discriminatory or unfair to public servants. On the contrary, it is a reasonable approach to recognising the particular conditions which they enjoy in return for the valued contribution which they make to our society.
21st February 2009
ENDS.