Govt must tackle public sector costs now: ISME

The Irish Small & Medium Enterprises Association (ISME), has called on the Government to once and for all address the cost of running the public sector. The association said it was absolutely essential that, despite threats of industrial unrest by the unions, that the Government immediately implement the McCarthy recommendations on public sector pay and numbers. The alternative will be to bankrupt the country and cause untold damage to the economy for generations to come, the association said. While acknowledging the importance of the public sector, ISME has, for a considerable number of years, voiced concerns about the burgeoning cost and inefficiency of the service, which continues to operate as a self-contained and self-interest unit, with little or no responsibility or accountability to anyone, it added. "The facts remain as confirmed by the CSO, the ESRI and many other analysts that wages in the public sector are running well ahead of those in the private sector with an average 25 per cent differential recorded. The sector is the only area of the economy that is reporting job increases. As the private sector suffers company closures, pay cuts and job losses, we cannot afford to allow a parallel universe continue, where public sector workers increase in both numbers and pay rates," said chief executive, Mark Fielding. "The threat of strike action by the public sector unions should be seen for what it is, an attempt by the unions to ensure that their vested interests maintain their privileged position and terms and conditions of employment, while the rest of us pay for this ongoing fiasco. For too many years, Government have avoided introducing reforms or cuts to the public sector for fear of a backlash from the public sector unions. This effectively has led to the situation where one sector of the economy holds the country to ransom. The Government must take appropriate strong decisions and, where necessary, face down the unions for the sake of the economy," Mr Fielding went on. Public sector expenditure threatens to strangle the rest of the economy, which is unable to continue to fund such costs. A long overdue pay and recruitment cut, together with an efficiency drive, is urgently required to reduce the burden of that sector and allow the private wealth generating sector to return to competitive trading, he concluded.