ITT lecturer shows real impact of pay reductions

20 Jan

by Owen O’Shea (Kerry’s Eye 16/12/09)

Over €25 million has been taken out of the Kerry economy because of the public sector pay cuts announced in the Budget, a lecturer at the Institute of Technology has found.

Simon Quinn, who lectures in finance and accountancy at the Tralee college has carried out extensive research in recent weeks to assess the real impact for businesses and services in the county that will be caused by the reduction in public service pay introduced by the government earlier this month.

He said that the knock-on effect on the local economy will see €25m less in circulation annually for the next few years, with shops and local businesses and services being affected.

“I have computed the loss based on the number of public sector workers in Kerry from gardai to teachers to nurses and civil servants.

“The cuts affect counties like Kerry much harder than the east coast where there are more sectors supporting the local economy,” said Simon.

“There is a lot of public sector employment clustered in Kerry for example with the IT, Kerry County Council, the Legal Aid Board and the Departments of Justice and Tourism in Killarney,” he said.

Using Central Statistics Office data and figures he obtained from a range of employers and agencies in the county, Simon estimates that the real impact of the pay cuts is not understood by the government which implemented them.

“Employment in the public service in Kerry is huge and the €25m in pay cuts takes that spending power out of the local economy.

“There are not a huge number of public servants on the higher pay scales in Kerry and most are medium income earners so there spending power is significant,” he said.

Simon said there is a multiplier effect in the economy when pay cuts like this are introduced because they have a knock-on effect in employment in the private sector and businesses all over Kerry.

Impact of public sector pay cuts in Kerry

  • Health Services Executive €8.25m
  • Primary schools €5.36m
  • Secondary schools €2.68m
  • Kerry County Council €2.28m
  • Institute of Technology Tralee €1.4m
  • Garda Siochána €1.35m
  • Government Departments Tralee €0.56m
  • Shared Services Killarney €0.45m
  • Tourism industry €0.18m
  • Legal Aid/Justice €0.09m
  • Legal/justice Tralee €0.02m
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