Public servants an endangered species, says Indarsingh
Opposition leader Kamla Persad-Bissessar, on Monday, cited a report by Moody’s Investor Services dated June 30 which stated, “Further pending reductions could materialise during the rest of the year as the government plans to cut three billion dollars from public salaries this year.” However the Ministry of Finance, in a media release yesterday, said Moody’s had “misconstrued” the absence of a requirement of a back pay allocation of $3 billion in fiscal 2018 to being a “cut” in “public salaries”.
And referring to the statement as quoted by Persad-Bissessar, the ministry said, “This statement by Moody’s has quite naturally caused some concern, but it is clearly a misunderstanding of the facts.
“The Minister of Finance wishes to make it absolutely clear that the Government has no plan to cut public servant’s salaries or public salaries by $3 billion.
The reality is that the Government is no longer faced with the $5 billion plus back pay bill for public officers which it was confronted with in September 2015, since most of this back pay was paid in 2016 and the first half of 2017,” the Ministry stated.
“Accordingly, in the next fiscal year, the Government will not be saddled with this huge liability. Moody’s clearly misconstrued the reference to the absence of a requirement for an allocation of $3 billion in back pay in fiscal 2018 and strangely characterized this reduction in back pay liability as a “cut” in “public salaries.
However, it is not a cut in salaries but rather a natural reduction in the requirement for back pay.” However, in a telephone interview yesterday Indarsingh, who is the Opposition party’s shadow labour minister, said government workers were being sent home at an unprecedented rate as moves were being made to reduce the public section wage bill.
“There is no hope as it relates to the creation of employment and that is why I am saying they are systematically dismantling the public service.”