Apparently it is only about €900 million.It actually might be as low as €750 billion according to one paper this morning, and that will more than likelybe wiped out by increase in social unemployment benefits.
They should have just cut gross salaries by 7.5%. It would have the same effect but at least it would have brought in public sector pensioners. I'm surprised there has not been more made about this in the media (and AAM).
The pension bill is approx 2 billion so 7.5% of that is 150 million. After tax relief this may only be closer to 100 miilion but if you add it up over Cowen's 5 year plan it would amount to a saving of half a billion.
Cutting gross salary would also reduce public sector pensions in the future.
This is exactly the point. Personally I would be willing to take whatever bad news was announced by the government in terms of tax increases or whatever if I had faith that they could show strength and leadership to lead us out of this mess. As things stand I don't have any faith in that - they seem more concerned with trying to appease everyone than trying to lead us.Time for someone to stand up and lead.
I honestly couldnt say what the government is doing right or wrong. The repurcussions of what they do now or dont do, will not be seen for awhile.
In relation to the first post I think a major problem for the government at the moment is their lack of clarity and inability to instill confidence in the public (obviously they arent communicating properly with the public).
One thing I would point out is that I seriously doubt that anybody could get everything right. Its easy to jump on the difficult decisions they have made and say they could of done it this way or that way. The truth is that no matter what they do know people will call for the heads. The benefits of any potential stimulus or tax saving package wont be seen until well down the road. People in this country dont want long term solutions or long term savings until its too late, they simply want for their interests to be looked after. I have said it before, a government mirrors its people.
Theres alot of anger out there because of the money wasted during the "celtic years". I understand this, but this is similar anger that is vented towards the bankers, again justified. But the problem I have is that none of this is going to get the country back on track. You sort out the problem first and then root out the cowards and the criminals. People have mentioned the term accountability which is ironic considering the fact that nobody in this country is actually taking responsibility for the decisions they have made. Nobody made people buy houses, rack up debth or not save (SSIA's should of thought people to save).
Nobody is giving any suggestion, the government make, a chance. If its hitting somebody elses pocket then of course you are on board, if its your kitty thats reduced then lets call for the governments head and jump on popular opinion on why they are wrong. Its not just our country and our government thats struggling with this outbreak of economic turmoil. The grass is always greener elsewhere.
We all have our role to play in this debacle, but so many people are blaming everybody else and crying foul when the recession actually brushes off their steps.
Im not a fianna failer (have no ties to the party and never voted for them) and have personally been affected by the recession.
Until we start working together as a nation we will simply be a bunch of self invested interest groups moaning about who should be hit the worst in this crisis . .
I suppose I should be fair and point out the muppets in opposition are no better. Why FG decided it would be good policy to make a political football out of public sector pay, I have no idea. Can none of these parties realise that the Country has been crying out for direction and strategy. I am willing to bet that people will support painful decisons and policy if they can see some sort of plan and logic. All we are getting now is incompetence from the Government and the usual political waffle from the oppostion parties. Time for someone to stand up and lead.
Anyone know how difficult it is to set up a political party?? (not suggesting me as leader by the way!)
... they seem more concerned with trying to appease everyone...
I agree with alot of what you say but the problem is that for us to work together as a nation, we need something or someone to rally around. The leaders of the Country should be providing this rallying point but they are not. This creates a vacum where people are fearful and struggling and looking for someone to blame because they can't see a way out. As someone above said, this could well lead to social unrest sooner rather than later unless the Government and politicians in general start doing their job. I don't think anyone is looking for quick cures or fixes but we do need a roadmap. Not some wishy washy 'knowledge economy' roadmap and piecemeal annoucements that fail to stand up to any serious analysis.
And another thing, slightly off topic. A bit disingenuous for the Unions to say the proposal was presented at the eleventh hour. Obviously the bearded ones don't read the Sunday Times for it published the details almost to the letter on the previous Sunday.
Sunny, it immediately struck me when I heard BC first, "was this before or after tax?" I posted the question on AAM within 5 mins. Gilmore then asked the question, BC answered that the levy was on gross salary, still left me confused though on balance I thought the term "levy" rather than "contribution" suggested no tax relief.
On the other point of calling this 1.4Bn savings in expenditure. That is correct in my view. For example they announced savings in professional fees and payments for projects. These too carry a sting in the tail in that there is the loss of tax on them, but you wouldn't expect these to be netted down in the statement of savings on expenditure, would you?
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