Workers won"t accept mishandled dig-out of the banks

The public sector unions should think long and hard before engaging in industrial action in opposition to the Government"s recovery plan. At present, while there is sympathy for those lower-paid public sector staff who find themselves at the brunt of the controversial pension levy. Despite the excellent work and dedicated service of thousands of public servants in schools, hospitals and Government departments across the State, it is unquestionable that there are positions within the public service that could be rationalised. Take the Department of Health, for instance. Currently only charged with devising health policy, following the creation of the HSE, there remains some 560 Dublin-based employees of that Department, a similar number to what existed before the creation of the HSE. Normally many private sector workers, spurred on by a level of envy at the pay, conditions and security of tenure in the public sector, would support the Government pension levy. However, this time, the Government has left itself open to accusations of targeting the public sector PAYE worker - by failing to in any way focus its attention on the wealthier elements of Irish society who made hay while the sun shone. The indications that executive pay in the banks will be capped is belatedly welcome - however, a few token heads on a plate would also help to chasten the public mood of anger at the bankers and the property tycoons who have sleepwalked us into this economic darkness. A closing off of the various tax shelters and an end to the ludicrous tax incentives for property development would, among other initiatives, also be welcome. But without these, the Government is in danger of been seen to bully the public servant. All this is taking place amid a growing realisation that a €7bn recapitalisation of the main banks might effectively only help to keep the wolves from the door. If it transpires, the banks have inadequately provided for, and estimated, their level of bad debts associated with property and development, there will, quite rightly, be a lynch-mob mentality among the general public. The Government must be clear that it is in receipt of all the relevant information from the banks - and that it does need another attempt to solve the banking crisis in a few weeks time, otherwise it"s attempts to squeeze much of the €2bn in savings this year from the public sector will seem as even more of a soft touch.