The Sunday Independent posed the following questions to Minister of State for Small Business John Perry but he refused to comment. A spokesman said: “As this matter currently remains before the courts, Minister Perry will be making no comment.”
In relation to the loan Mr Perry agreed with Bank of Ireland to help pay his outstanding tax bill of approximately €100,000, what security – if any – was provided to the Bank of Ireland?
• Why did Mr Perry tell Danske Bank officials that he was friends with Bank of Ireland chief executive Richie Boucher? What would this have to do with any decision the bank would make on extending credit to him? Did he expect it to make a difference?
• Why did Mr Perry meet Danske officials in his Dail office? Did he not consider this to be an inappropriate use of that office? Did he think a meeting held in a minister’s office would in any way influence Danske Bank officials in their treatment of him?
• Can Mr Perry explain his remark to Danske Bank officials on January 31 last, where he accused them of being engaged in a form of bullying? Why did he go on to ask the bank’s officials if they treated all their customers in the same way? Does he consider it appropriate to have referred to the bank’s relations with other customers given his position as a government minister?
It is reported that the Minister Richard Bruton will propose that tax cuts are needed to keep the economy on course. Well, at least this has the virtue of consistency since this is the same Minister who proposed that high-paid company executives should pay hardly any taxes at all. Over the next few months we will get a Goldilocks debate over taxation – is it too hot, is it too cold, is it just right. But there’s an elephant in the room ready to stomp on the poor girl – and this will hardly get a mention.
For we are a low-waged, low-earning economy – and it is getting worse.
According to Eurostat Irish earnings have always been below EU averages. Even in 2008, when Irish earnings peaked, we were still well below average. Today, after four years of wage stagnation, we are falling further behind. In 2012 average earnings for:
- Other EU-15 countries was €38,525
- EU-15 countries not in bail-out: €41,963
- Other Small Open Economies: €45,123
- Ireland: €32,626
Since 2008 Irish earnings have flat-lined. In other EU-15 countries, earnings have increased by 10 percent while in other small open economies, earnings have increased by 13 percent.
To give another perspective, average Irish earnings would have to rise by 18 percent just to reach the average of other EU-15 countries. They would have to rise by 29 percent just to reach the average of core EU-15 countries. And they would have to rise by a phenomenal 38 percent just to reach the average of other small open economies.
Of course, there is that little matter of the ‘recession’. Many might argue that in a recession, what can you expect? Yes, recessions don’t help average earnings. But neither do discretionary pay cuts. To what extent that pay cuts or freezes are opportunistic on the part of the employer is difficult to assess. The rise in profits, however, is not. The EU AMECO database shows profits in Ireland rising by 24 percent since the profit trough in 2009; in other EU-15 countries the rise has been 7 percent – in line with growth in average earnings.
As always, we have to be careful when comparing data like earnings. Much depends on the composition of the workforce. For instance, if more people are working in manufacturing, the wage will be higher than in economies where the number of hospitality workers is high. So one would have to do a sectoral comparison to get more insight.
Further, if there are high levels of part-time workers, this will reduce the average.
However, there is strong support from other data coming on stream for the proposition that our wages and earnings are well below the European averages. The following is from Eurostat which measures hourly labour costs in the business economy, which is essentially the private sector.
Private sector hourly labour costs in Ireland are 14 percent below the average of other EU-15 countries. This falls to 21 percent when compared with the core EU-15 countries; and when compared to the average of other small open economies, it falls to 30 percent below average. Are we seeing a picture here?
We are a relatively low-waged economy, we are a low-earning workforce. And such economies find it hard to generate tax revenue. But you don’t get that perspective to the agenda and you certainly won’t hear it from Government ministers. They are too busy trying to drive down wages – whether it is in the public sector, the banking sector (where 40 percent of bank staff earn €30,000 or less), in the low-paid sectors where many of the protections under the Joint Labour Committee have been undermined under Government ‘reforms’. All this talk about ‘increased competitiveness’? Cut wages.
So when you hear some commentator or Minister, pretending to champion the hard-pressed workers by calling for tax cuts, just remember: the tax cut is a diversion.
The real issue is pay and earnings.
As he left the conference hall following his address, some delegates chanted: “no more cuts.”
One delegate, Bolatito Aderemi from the Dublin South West branch, started to sing: “All we are saying is enough is enough.
As he passed her Dr Reilly said she should “stick to her day job”.
A number of delegates objected to the Minister’s comments and said the union should seek an apology.
Dr Reilly later met with Ms Aderami privately and apologised.
He said he had made a quip as he left the hall. He said he had been informed that someone had taken offence. He said he had not intended to offend anyone.
Ms Aderemi, who is originally from Nigeria, said the Minister had shaken her hand, tried to give her a hug and said he was sorry and did not mean to embarrass her. She said she accepted his apology.
Dr Reilly had been greeted in silence as he arrived at the conference. However he received applause following an anouncement that nurses would hold senior leadership positions inthe proposed new hospital groups and in the Department of Health.
He said each of the proposed new hospital groups, to be announced formally next week, will have to have a director of nursing as a full executive on the management team.
“I will (also) establish a new chief nursing officer role within the Department of Health, that this role will be at assistant secretary level and a full member of the management advisory committee and will have executive authority to lead the nursing profession in Ireland and represent its perspective both to Government and internationally.”
Dr Reilly told delegates that pay savings of €150 million had to achieved in the HSE this yearin addition to the many reforms and efficiencies designed to improve servies and to live within its budget.
“Frankly, we are between a rock and a hard place.”
The Minister said that management and unions were meeting at the Labour Relations Comission to explore all the avenues open to try to reach a resolution to reducing the paybill.
“If we can find such anagreement it would be so much better than an imposed solution.
However he said the country was borrowing €1 billion per month and that this could not continue.
Government Ministers – estimated to be costing the Republic nearly €9 million a year – Francis Donohoe reports
Taxpayers’ money is being paid out in pensions to approximately 100 former Ministers, many of whom have lucrative new jobs and positions despite their failings as public administrators.
Former Taoiseach Bertie Ahern receives the largest state pension of €152,331 for his service as minister and TD. Other former Taoisigh receiving pensions include Brian Cowen on €151,061; Albert Reynolds, who is getting €149,740 and John Bruton on €141,849.
Former Health Minister and Tánaiste Mary Harney, who is six years short of the normal retiring age, is paid an annual pension of €129,805.
Former Tánaiste Dick Spring has a ministerial pension of €121,108, on top of his basic salary of €27,375 and €3,000 for every committee meeting he attends as public interest director at the partly state- owned AIB.
The Workers’ Party National Organiser, Seamus McDonagh, said: “The continued payment of these pensions to former ‘public servants’ while the most vulnerable are having their services cut is obscene. The amount that will be saved if a special levy is introduced to bring these pensions down to the standard state pension will not sort out the economy but will set a moral example.”
He added: “It is our understanding that special legalisation which would tax these pensions at a special high rate can be enacted, however the Government has claimed such a change would necessitate a constitutional referendum. If so, they should let the people vote on this issue.”
LookLeft will be contacting TDs in the coming weeks to ask them to state their position on the introduction of emergency legalisation to curtail these pension payments and will publish their responses.
MORE than 10,000 Mayo homeowners face potential legal action after failing to pay the household charge. n July, Mayo County Council had been threatened with cuts of €2.57 million from the Local Government Fund (LGF) if it did not improve collection rates of the charge. At that stage, the collection rate in Mayo was 63 per cent, but county manager Peter Hynes told a special meeting of Mayo County Council that as of yesterday (Monday) the figure now stands at 68.5 per cent. He said that a cut to the LFG would be “catastrophic” and noted that €641,589 was already deducted from the third quarter payment due to the council.
Following meetings with the Department of Environment, Heritage and Local Government and Minister Phil Hogan, the council have been told that if the collection rate reaches 75 to 80 per cent the Local Government Fund will be paid in full.
Taoiseach wants staff in schools and hospitals to work longer hours
THE Taoiseach Enda Kenny has told government ministers to include an extension of the working day and week in their submissions of “additional proposals” to significantly reduce the public sector pay and pensions bill, the Sunday Independent can reveal.
While the Government remain
STREET PROTESTS now seem certain in Sligo once the scale of planned HSE cutbacks is confirmed in Home Help supports. See SligoToday.ie 10/9/12
Trade union SIPTU held meetings with Home Helps in Sligo and Tubbercurry yesterday (Monday).
Chop and Slash
There are growing fears that the scale of HSE chop-and-slash could be significantly greater even than first announced only a fortnight ago.
The Minister of miseducation
The Mighty Quinn is the minister in command of the miseducation of the youth right across the nation. This is the self-same man who says, come all without, come all with nought. I am a socialist minister who has the power and influence to take care of one and all. He maintains, you know it’s funny how money changes the situation and miscommunication leads to complication but then again, comprehend we live in the land of the broken promise. He says I understand my emancipation no longer fits Johnny Publics equation, but please bear with me a while I am on the go… clocking up the mileage and assiduously catching up on Ministerial hot air. The twaddle and gibberish from some of my colleagues never ceases to amaze me.
Rest assured we have no problems in education funding. I guarantee nobody will go short. Photostat copies of Anglo Irish bonds will off set any increase in fees and they are available to all who pass the means test.
Rotten Island Ministerial Reports
The Minister for Muck and Water Squire Slovenly has noted that the fields of Rotten Island have become full of grass. and as result of this phenomenon he has advised all animals and livestock living in these regions to head for the safety of the towns and villages…he went on to state as long as this emergency lasted these unfortunates would be given immunity from would be poachers and speculators… The punishment for wrongdoing would be severe
He outline penalties as follows,
(1)To be confined to a no smoking zone for 6 months.
(2)A ban from driving for one year provided he/she did not hold a current license, if you held a license the matter of course was subject to monetary negotiation.
(3)People on the dole, would have their money suspended but in lieu of this, they would receive 50 blank sheets of photographed Anglo Rotten bank, bondholder’s notes plus a Chinese counterfeit lollipop for each of your offspring.
The Minister stated their was a lot of shite attached to this job and that he was nobodys pussycat