Missing the point about public sector pay


I despair about politicians…

Well, most notably two of them; dear old Golden Brown and his Darling.

In last weeks Pre Budget Report, Darling, it has been muted, wanted to make more cuts but was overruled by his boss. It was just a rumour that has been strenuously denied.

At about the same time, GB announced that he was going to wage war on high earners in the Civil Service and that anyone earning more than £150,000 will have to justify their pay at the highest levels.

The thing about pay is this: it’s not how much someone gets paid that is the important consideration… it’s how much value they bring to an organisation as a result of what they do. So, to ‘wage war’ on high earners is a disingenuous thing to do.

It actually shows how out of touch GB is with the reality of life in EB and what he thinks we want to hear. In our business we would not get rid of our highest wage earner. Yes, she’s expensive if you simply look at the cost involved in keeping her on.

But we can earn much, much more in income from her activities than she costs us. It’s just the nature of the beast, it’s the way things happen and I can’t work out why GB just doesn’t get it.

In fact, it’s been worrying me so much I’ve been thinking about it for days and I think I’ve come up with an answer…

I think GB is rubbish at winning elections and he just doesn’t know what to say.

He thinks that by making Darling reduce the amount of cuts and telling us that he wants to wage war on high earners he’s saying things we want to hear… as though we don’t understand the problem.

But I, for one, want greater cuts now, better efficiencies and a reduced debt. Why?

Well, we all know these cuts are coming, whether they’re before or after an election, it doesn’t matter. He can’t hide the fact they have to be made. So, I’d rather get on with the belt tightening now, so we repay what we owe sooner… probably just in time for me to become a grandparent. (My children are 10 and 12).

Having said that, I don’t think the way to get rid of the debt is to simply wage war on high earners in the Civil Service. A better thing to do would be to wage war on inefficiency in the Civil Service, and if that means high wages, let’s get rid of them!

What we really need at the helm is someone who’s been in business… then we’d get better fiscal management.

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