Skip navigation

Tag Archives: pay

There is no comparison between public service and private enrichment. Let us stop making one so as to attract “the right stuff” into public service.

“There may come a time some day when the country will have to face the question of paying the great heads of the Civil Service on a commercial basis. There is a constant temptation, and it is only those who, like the right hon. Gentleman opposite (Mr. Austen Chamberlain), myself and others who have had some experience, know what the temptation is. Great commercial undertakings are constantly trying to lure away our great Civil Servants by offers not of the same salary, not of twice, but of five or ten times the amount that they are receiving as Civil Servants. Some of them, for family and other reasons, succumb to the temptation, but most of them resist it. But there is an element of honour in the public service which will always be some sort of contribution and make towards the retention of these great public servants. When we offer £400 a year as payment of Members of Parliament it is not a recognition of the magnitude of the service, it is not a remuneration, it is not a recompense, it is not even a salary. It is just an allowance, and I think the minimum allowance, to enable men to come here, men who would render incalculable service to the State, and whom it is an incalculable loss to the State not to have here, but who cannot be here because their means do not allow it. It is purely an allowance to enable us to open the door to great and honourable public service to these men, for whom this country will be all the richer, all the greater and all the stronger for the un-known-vicissitudes which it has to face by having here to aid us by their counsel, by their courage, and by their resource.” –

The UK CHANCELLOR of the EXCHEQUER (David Lloyd George) moving his Payment of Members motion, HC Deb 10 August 1911 vol 29 cc1365-4831365

Advertisements

A revealing sentence appears almost casually towards the end of an article in today’s Irish Times. The article is, “Re-emergence of FF is not inevitable” by Noel Whelan [i]. The sentence is, “This poll [ii] shows that more than two-thirds of the electorate favour targeting child benefit at those who need it most.” This is true but it lacks democratic validity unless we know the alternatives that were rejected in favour of the proposition.

The poll asked the question about payment of child benefit in the context of reducing public expenditure. The question has merit in that it invited citizens to think about priorities. The problem is that it limited priorities to the question of how we might reduce spending on child benefit and thereby excluded consideration of all other priorities.

I’ve argued that the least important area of public spending is pay and pensions above 100k and 50k p.a. respectively and that – being the least important – it should stop first, i.e. a ceiling should be introduced before consideration of cutting more important spending.

My views may be unacceptable but it seems I’ll never know because I’ve failed to get the matter onto the public agenda. Mine is a legitimate point and it comes with an argument [iii] but it is effectively censored until a public opinion poll asks citizens to identify the least important element in public spending and includes in the list of options the money paid out in excess of the 100k and 50k limits.

The Irish government wants to reduce the public pay bill by 10%, about 20Bn. Discussion about how this might be done has been limited to familiar themes. The only nod to decency has been mention of leaving the salaries of poor public workers untouched but even this has been challenged as “unfair” to poor people employed by private companies. In these strange economic times why not indulge in the luxury of radical thought?

 

If we open discussion to hitherto unthinkable possibilities, it might lead us to reconsider our values. There may be a progressive but challenging way to reduce the public pay bill. Let’s consider putting a ceiling on the income of rich public employees. This course has advantages beyond reducing the total pay bill. It makes a statement about and begins to address excessive inequality in Ireland but it will make no one poor. Moreover, the conventional argument for outlandish pay, that high earners will defect to jobs in the private sector, no longer applies. Let’s calculate. How much would be saved if no public worker received in excess of, say, E200k per annum? Perhaps the number of workers that well paid is too small to make a significant saving. Let’s then calculate for 150 and 100. Going any lower might begin to push into the terrain of radical egalitarianism but 100k is more than twice the average industrial wage and five times the minimum wage.