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Morgan calls on Government backbenchers to vote against Bill to cut public sector pay

16 December, 2009


Sinn Féin Finance Spokesperson Arthur Morgan has called on government backbenchers to vote against the Finance Emergency Measures Bill and reverse the decision to implement cuts on public sector workers across all grades.

Deputy Morgan said the cuts would hit low and middle income earners in the public sector disproportionately and that the government should reduce the pay of the highest earners and introduce a new third rate of tax for those earning over €100,000.

Deputy Morgan said:

“These cuts across the board are not progressive. A 5% cut to someone on €25,000 is a far greater hit than an 8% cut for someone on €125,000. I am calling on all government backbenchers to vote against this Bill and reverse this decision.

“The government should reduce the salaries of those earning over €100,000 and introduce a new third rate of tax of 48% for income earned in excess of that amount.

“The government continues to take the easy option in its approach to this Budget and to the public finances in general. It is too easy to hit the lowest paid, and this government believes it is the path of the least electoral pain.

“But as well as pushing people into poverty, it will not be beneficial for the economy. Low and middle income earners spend more, so by cutting their pay you are just taking money out of the real economy. They will see the effects of this in next years VAT receipts.

“It is not too late for the government to take the tough but brave decisions and ask those who can afford to pay more to do so.

“I am therefore calling on government backbenchers to vote against the Finance Emergency Measures Bill and reverse the decision to implement cuts on public sector workers across all grades.” ENDS

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