SFA slams public-sector strike action

SFA Director Patricia Callan said the SFA had been inundated with calls from small business member companies this morning, “who think the strike is outrageous and that a lot of the people in the public service really haven’t got much of a clue as to how difficult nearly all small businesses and the people that are working in them are finding things at present”.

She pointed out that small businesses throughout the country have been directly affected by the strike, with many short-staffed as people have to take leave to look after their children due to schools being shut down. They are also being affected by the lack of service provision by local authorities, revenue and social welfare, she said.

Also of concern to the country’s small firms is the reputational damage that may be caused to Ireland internationally as a result of the strike. This damage, Callan said, has direct consequences for the rating agencies which are so crucial to Ireland’s importer and exporter credit rankings.

Government must hold the line on cuts
The SFA is urging the Government to hold the line on line on its plans to cut €1.3bn from the public-sector pay and pensions bill in the forthcoming budget, saying this was critical to restoring confidence in the economy.

“The experience of the series of emergency budgets has resulted in an air of uncertainty amongst both business investors and consumers, who for some time have been saving any spare cashon the basis of what might come,” Callan said.

“If the Government in Budget 2010 demonstrate that they now have a realistic and feasible plan for addressing the €26billion deficit going forward, then we are confident that business-people who have been postponing investment decisions will go ahead and consumer demand will increase as well.”

Callan said the country, with an 8pc drop in its GDP growth rate, is no longer capable of generating the tax revenues necessary to maintain the scale of the public sector we now have, adding that the Government could not continue borrow €400m a week to pay public-sector wages.

“There is no way any reasonable person can expect to exit this deep recession with the standard of living they went into it with, intact,” she said.

Small firms have already paid their price
The SFA said small business in Ireland had already paid its price, having been forced into major cuts over the past 18 months.

“They have reduced the pay bill through a range of other measures including the removal of overtime, shift and bonus payments, employees working additional hours unpaid, pay freezes and pay decreases, which have averaged at 15pc for management and 10pc for all other staff. 

“The Government has delayed long enough and now must take similar decisions with regards to its employees in the public sector, through consensus if possible, but if necessary without,” Callan said.