Public Sector Cuts Call Supported

There has been a positive reception for a controversial call by the business owners' organisation to cut jobs in NI's public sector.

The DUP Assembly Member for Strangford, Simon Hamilton, welcomed the Confederation of British Industry (CBI's) call for cuts in public sector jobs.

Northern Ireland's business leaders said that a cut in public sector wages is needed to help plug expected funding cuts of about £2bn.

In proposals published on Wednesday, the CBI said radical reform including a pay-freeze and a revision of pension arrangements was also needed.

Today, the DUP man also welcomed the organisation's commitment to reforming the structures of Government in Northern Ireland.

The MLA said that whilst he did not agree with every proposal in the CBI's strategy document, it was an interesting contribution to the debate.

On Wednesday, the CBI Northern Ireland Chairman Terence Brannigan, said: "We have too many structures, with too many layers, employing too many people, often rewarded too highly while delivering too little to the people who ultimately employ them - the citizens of Northern Ireland.

"Currently pay levels within the public sector are about 30% higher than those in the private sector and job numbers have increased dramatically over the last 10 years.

"Therefore what we are saying is we must reduce the deficit between public sector and private sector pay and we must reduce the number of public sector employees."

Mr Brannigan said businesses had already had to adjust to a new economic reality by streamlining, downsizing, freezing and cutting wages and developing more affordable pension provision.

"We now need to see similar action from the public service if Northern Ireland PLC is to achieve a level playing field that will address the chasm that exists between the public and private sectors."

He was speaking as the CBI report, 'Time for action: Northern Ireland - delivering public services in a time of austerity', was published, offering sweeping operational and fiscal changes to all government departments - particularly health, housing, education and policing and justice.

The DUP Finance Committee Member said: ''The DUP has long argued for the reform of Government structures in Northern Ireland.

"I am pleased that the CBI has taken up the DUP's call for a reduction in the number of Government departments. Northern Ireland does not need 12 government departments with all the associated costs that go with that.

"Alongside cutting back on the size of government our policy of reducing the number of MLAs would help to save millions of pounds as would our policy of reducing QUANGO spending and cutting back on unnecessary North-South bodies and bureaucracy," he said today.

He said that streamlining structures is a straightforward step within our reach where money could be saved.

"People who advocate a policy of burying our heads in the sand and ignoring the Tory cuts are not doing the people of Northern Ireland a positive service," the MLA concluded.

The Irish Congress of Trade Unions however, criticised the proposals and said they did the CBI's own membership "no favours".

Peter Bunting of the ICTU told the BBC the confederation had a "brass neck" to make the comments.

"One in three private sector businesses in Northern Ireland depend upon contracts from the public sector," he said.

"Every year, the State which the CBI feel obliged to slash and shrink buys services and goods from the Northern Ireland private sector worth £3bn."

(BMcC/GK)