Speaking as trade unions from all sectors of NI economy and society discuss the reports of a ‘package’ at political talks today, Gerry Murphy (ICTU Assistant General Secretary) said
Northern Ireland needs sustainable public finances, not quick fixes. Workers and their families cannot wait indefinitely for political talks at Hillsborough, but any settlement has to acknowledge the scale of the crisis that we have been brought into. Public services are facing collapse, family incomes are at breaking point and we need an honest policy response. These issues did not arise overnight and the solutions required must be significant and enduring.
The Northern Ireland Committee of the Irish Congress of Trade Unions (NIC-ICTU) set out a path for sustainable finances in Northern Ireland in our document Smart Money. While the UK government has finally begun to accept the scale of the problem, it is clear from their proposed financial offer that they have a lot left to learn.
- We welcome the acceptance that public sector pay has been cut and needs to be restored.
- We welcome the acceptance that Northern Ireland public services are currently underfunded.
- We welcome the acceptance that transforming public services requires investment.
However, acceptance of a problem is not sufficient. We need adequate solutions. It is clear that the financial offer being made by the UK government falls well short of what is required. On a number of areas the UK government is simply repeating the mistakes of the past.
- Public sector pay is a recurring expenditure. Offering 1 year funding to meet public sector pay requirements is not only shortsighted, it is financially irresponsible.
- The Secretary of State should release funding for payments this fiscal year, as a confidence-building measure.
- A fiscal floor is about providing public services in Northern Ireland on the same basis as the rest of the UK. This cannot simply be achieved by setting an arbitrary limit on public spending.
- Transforming public services is an on-going process and the financial commitment must match the scale of what is being proposed.
- A stabilisation fund is welcome, but such a fund can only fulfill its purpose if the longer term settlement is sustainable.
We would call attention once again to the proposals we made earlier this year in our policy document Smart Money. We need:
- a cancellation of Northern Ireland’s debt
- a fully funded transformation fund
- a fiscal floor that reflects spending needs
- a reset of the UK’s untenable fiscal strategy
A lasting settlement to this crisis requires engagement with the Trade Union movement. We stand ready to contribute to this process.
