TOYS OUT OF A PRAM

So the unions are threatening 'French style strikes' over the prospect of their pensions being altered.

I have said over and over again that we cannot afford the public sector (PS) pensions bill. WE couldn't ten years ago and we certainly can't now.

The reason why PS got good pensions was that traditionally PS was poorly paid, jobs for life.

But...

Since Labour got in, PS outstripped the private sector in terms of pay and conditions.

So what is the excuse for brilliant pensions?

Apparently some PS workers are still poorly paid.

Well, y'know what, so are some private sector workers. But they are not going to get the taxpayer to fund their retirement.

So why should PS expect the taxpayer to do so?

You are not some special breed that needs credit and protection. You, in essence, are people who do not generate wealth for this country, you spend the wealth of the nation.

So what makes you so special?

Oh and to the unions, 'French-style strikes'? Fair enough, but on one condition, we should be allowed to have Gendarmerie-styled response to these threats.

Remember, if you throw all your toys out of a pram, you will end up with no toys.

PENSIONS

The pension deficit for local councils in England and Wales could hit £60bn this year according to the Lib Dems.

Apart from a firm case of NSS there are other important factors about this.

Firstly - Like the misguided FRS17, this does not mean councils are going to go bust. Don't panic. The defecit figures are a snapshot based on one particular day and that valuation of shares, bonds etc held by a pension fund versus if every single member of that pension fund retiring that day.

What this does mean is that there will have to be siginificant shifts in the portfolio value to pay for those who retire.

Which leads me to-
Secondly - the fundamental flaw in civil service pensions. They are protected by law, which means that there needs to be an act of Parliament before any siginificant change to provision can be applied.

Which means you and I pay for it, either through cut services or higher tax bills.

This two-tier system has been flawed for quite a number of years and I have blogged about it in the past.

The State can no longer give such gold plated schemes to non-income generators - ie: they spend the money we give them, they do not generate the income of the country.

State-employed wages have rocketed in the past 13 years and the original excuse of poor wages versus life service can no longer apply. Sure there are still lowly paid council workers but there are lowly paid private workers - why should council workers get better deals?