The newly released report of the Special Group on Public Service Numbers and Expenditures Programmes (Bord Snip Nua) faces intense opposition from vested interests in many sectors because it dares to put in print the stark reality of Irish Public Sector finances.  It further offends because it has the temerity to suggest specific areas for cutbacks and present ideas on how our Public Sector can be made more efficient.

As a society we are rapidly approaching the point of having more people supported by the public sector than we have working in the private/productive sector.  The bottom line is that our public sector is financed by the taxes paid by private businesses and private sector employees whose profits and pay depends on their ability to compete in the world economy.    If our businesses have to bear a much higher tax burden then their competitors, then we will not be competitive and businesses will continue to fail.

Government is currently borrowing €400 million per week and we are paying the highest interest rates for our debt of any country in Europe.  Turning that around will be painful but is necessary.  

The Chamber strongly believes that the recommendations, or equivalent cuts in expenditures must be implemented.  However, we believe that they need not cause a significant diminution in the safety net for our people and the government services that are needed.  Instead, Public Sector leaders, workers and unions need to eliminate wasteful practices, identify the most efficient ways of delivering services, implement savings and bring public sector compensation and pensions in line with other countries in Europe and the private sector.

In doing so the Chamber believes the following principals must be followed:

The goal is to make the Public Sector more efficient while not reducing services.

When you have to save a lot of money you must look for savings where most the money is spent.

Defending wasteful and inefficient practices is unacceptable.

Everyone must share the pain

The cost of living has gone down.  Cost of living adjustments should not be a one-way street.

Private sector employees have borne substantial cuts in wages and job losses.  Public Sector benchmarking must recognise this and cannot be a one-way street.

If the Public Sector employees want the best pensions, then they should pay the added cost or accept lower compensation as a trade-off.