From Nipsa
The new Liberal/Conservative Government has wasted no time in pursuing its attacks on the public services. The purpose of this circular is to provide members with an indication of the breadth and scale of these attacks on public services and staff who deliver these services to the community. Despite the populist rhetoric from the UK Prime Minister and other Cabinet Ministers of inclusion and empowerment it is clear that the objective of this new government is to dismantle public services as much as possible while at the same “gifting” public services to a private sector whose sole interest is profit and not need. While the previous Labour Government had planned to continue its attack on public services through further public spending cuts, the coalition government has taken this approach a step further and under cover of the economic and financial crisis has decided to steamroll ahead to achieve a range of policy objectives which among other things include reducing significantly the size of the public sector, promoting privatisation and destroying the pension provision of public sector workers.
Cuts to Public Expenditure
The Chancellor of the Exchequer in his May 2010 “mini” budget announced that over the next 4 years there would be cuts in Departmental budgets of between 25% and 40%. If cuts of this scale are not stopped then there will be serious consequences for public servants who will face significant job losses and compulsory redundancies. While Ministers in the NI Executive have expressed concern at the likely damage that these cuts will have on jobs and services they will inevitably be involved in taking measures to deal with wholesale cuts to Departmental budgets. These cuts will apply across the whole of the public sector generally with no area likely to escape the impact.
Attacks on Redundancy Payments
Despite the success of the Judicial Review initiated by our colleagues in the PCS Union, the new Government is now planning to make even more draconian cuts to the Civil Service Compensation Scheme. The Government now plans to cap redundancy payments at one year’s salary for compulsory redundancy and 15 months for voluntary redundancy. At the moment this remains a major issue for members in the Civil Service but in the context of threatened redundancies this plan by the government can only be viewed as a means of getting these redundancies on the cheap.
Public Service Pensions
The Government has established a Commission headed by John Hutton, former Minister in the previous Government, to have a fundamental look at public service pensions. The agenda is unambiguous. The Government has asked the Commission to take into account a range of factors including what is described as the “growing disparity between public service and private sector pension provision” as well as “how the risk should be shared between the taxpayer and the employee”. John Hutton the Chairperson of the Independent Public Service Pensions Commission has also advised that he has been asked to consider the case for delivering savings on public service pensions ahead of the Government’s Spending Review which will be published this Autumn. The terms of reference for this review reflects in many ways the anti public service agenda of private sector cheerleader organisations such as the CBI and the Institute of Directors which have been attacking public service pensions for many years.
Public Sector Pay
The Government has unilaterally applied a two year freeze on public sector pay with a concession for public servants who earn less than £21,000 per annum Full Time Equivalent (pro rated for part time staff). This is grossly unfair and comes at a time whenever bonuses for senior private sector staff especially in the banking sector have started to rocket once again. It should be noted by members that workers in the private sector who have been subject to pay reductions represent a minority of workers in that sector. In addition members should be aware that reports have surfaced that a number of government figures have expressed support for further moves to introduce regional public sector pay. There can be no doubt whatsoever that the depressing of public sector pay is likely to remain as a central element of Government measures to cut public expenditure.
Privatisation
Prior to the UK General Election the Conservative Party claimed that the National Health Service was safe and would be protected if they were elected. The Health Secretary in Britain Andrew Lansley has already announced plans to reform the health service in England and Wales in a way which opens the door for massive privatisation and the further marketisation and commercialisation of the NHS. The large private health providers are already rubbing their hands in glee at the prospects of the opportunity of making massive profits from a “liberalised” health service. We do know that there are those in the current government who envy the US approach to providing health services which is predicated on an ability to pay on the part of individuals and where millions of citizens are denied access to universal access to health care. We need to ensure that the NI Executive and the Health Minister in Northern Ireland resist any attempt to impose similar proposals on Northern Ireland.
Trade Union Response
As part of the campaign to defend public services NIPSA will be working along with our colleagues in the broader trade union movement to oppose cuts to public expenditure and against any measures which will result in job losses, compulsory redundancies, reduced pension provision and freezes on the pay of public servants. The threat that members now face is unprecedented and represents the biggest threat to public services since World War II. The Conservative/Liberal Democrat Coalition government is a government of millionaires which is managing the existing financial and economic crisis in a way which favours heavily the wealthy in our society and at the expense of those who rely on public services and those who deliver them.
Public Protests by NIPSA on Thursday 12th August 2010
As part of its ongoing efforts to highlight the folly of public expenditure cuts NIPSA is calling upon all branches to participate in protest meetings outside workplaces between 12 noon and 2 p.m. on Thursday 12th August 2010. At these events branches are asked to distribute copies of the NIPSA leaflet “Who Suffers Most From Public Spending Cuts?” to members of the public. Copies of the leaflet should also be made available to individual NIPSA members.
Supplies of the leaflet can be obtained by contacting Aidan McDonnell at NIPSA HQ telephone 028 9066 1831 or email aidan.mcdonnell@nipsa.org.uk
A further bulletin will be issued shortly on the arrangements for the protests on 12th August.
Yours sincerely
BRIAN CAMPFIELD
General Secretary