£100m owed to government workers may wreck budget
Thursday, 4 September 2008
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A £100M bill for civil service back pay may have to be paid directly by the Stormont Executive, potentially throwing Budget plans into disarray, it emerged yesterday.
Initial discussions between Northern Ireland officials and the Treasury have failed to conclude who will pick up the tab for the cash owed to hundreds of lower level civil servants who have been underpaid for years.
Negotiations involving the Northern Ireland Public Service Alliance (NIPSA) and others are also underway but the issue could still result in legal action.
Finance Minister Nigel Dodd’s department said, however: “It is our sincere wish to resolve the position through this process of negotiation.
“Of course we would wish if at all possible to avoid legal action, but a decision on whether to initiate legal action will ultimately be a matter for others.”
The Treasury has so far refused to accept it should fund the massive amount, even though the issue dates back to Direct Rule Ministers.
The Department of Finance and Personnel said no conclusions have been reached but there is speculation the cash could come from Departmental ‘underspends’, which otherwise would go to schools, hospitals, roads and other Executive priorities.
Mr Dodds wrote to the Treasury shortly after taking up the Finance post and held an initial meeting with the Chief Secretary to the Treasury, Yvette Cooper — second-in-command to Chancellor Alastair Darling — on July 9.
The DUP Minister has accepted there is a “moral and legal” obligation to pay the cash and insisted his Department is aware of the gravity of the issue.
He also told the Assembly, however: “This is a legacy, or an inherited issue. What brings it to a head is the possibility of legal action on this front, which arises this year. My officials will work to clarify the precise level of liability in relation to the equal pay claim. Work that has been done suggests the liability may amount to a figure in excess of £100m as a minimum.
“However, we will not know conclusively until payments are calculated for each individual member of staff. We will engage extensively with the Treasury on this matter, because it has come to the Executive very late in the day.
“It has arisen as a result of matters not being addressed during direct rule.”
Speaking just before the summer Assembly recess, Mr Dodds said the talks with the Treasury would proceed with urgency, but a spokesman for the Department said: “Discussions are at an early stage and no conclusions have been reached as regards how best to address the issue.”
NIPSA, meanwhile, which has also advised members to file individual claims, said: “On the basis of these initial discussions it is clear that intensive and prolonged negotiations will be required to resolve the equal pay issues on a basis acceptable to NIPSA and to members.”
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The treasury need to hurry up and address the issue of the back pay owed to thousands of fed up Civil Servants! Our local MP's should be doing more and putting more pressure on the treasury to get this issue sorted out. Instead of having hissy fits and ignoring the real issues that people are interested in.
Many Civil servants do not want to go on strike as they are providing a service to the most vunerable in society but if this issue isn't addressed soon many hard working, stressed out, underpaid and undervalued civil servants will be calling very loudly for Stike action. If anything will bring them out then this will!
Posted by Jo | 15.09.08, 21:48 GMT
why is the treasury not picking up the bill as it was a direct result of home rule Westminster ministers NI civil servants were underpaid for so long. are we 2nd class citizens? I would also like to point out that when the Welsh and Scottish devolved governments approved their civil servants pay increases it was the treasury that picked up the bill. it should do the same here and stop trying. as ususal, to aviod liability.
Posted by Damian | 09.09.08, 08:21 GMT
Anyone here who feels that we civil servants are not worth our salary should put their money where their mouth is and apply for a job with us.
Just make sure that you are posted to the Social Security Agency, Disability & Carers, Child Support Agency or Incapacity Benefit.
If you are lucky enough (or maybe unfortunate enough) to get an Admin Officer grade in one of these branches I can guarantee that you will know what a days work is.
When you are dealing with benefits on the "front line" and being over-worked, short-staffed, under-paid, taking abuse from claimants and having to suffer the consequences of crisis management on a daily basis maybe you would have a different opinion of your civil servants.
P.S. I am writing this from home, after work - not on my employers time.
Posted by Jim | 05.09.08, 17:05 GMT
Marty - well I wouldn't apply to the Civil Service if I were you, given that you obviously can't spell! It also shows your ignorance of the issue - the people in question were underpaid for the job that they did for many years, and it was the threat of legal action that prompted Government to act. I am sure that if you were in the same situation you would be crying out as well. Remember that these are the front line people who provide you with the core services that society couldn't function without - think of that next time you draw your dole.
Posted by Jack | 04.09.08, 18:21 GMT
Marty, Finbar, & Michael,
I note that your comments were all posted within normal working hours. You're obviously not that snowed under with work in the private sector if you have time to post comments on the Belfast Telegraph website when you're meant to be working.
Pot calling the kettle black.
Posted by Joe | 04.09.08, 16:48 GMT
And Sinn Fein STILL insist upon pushing the Irish language agenda?
We CANNOT AFFORD IT!
Posted by Centaur | 04.09.08, 15:18 GMT
The civil service is a Joke. They do the little in the line of work are well payed and take sick days when they feel they want a holiday.
What they need is a dose of reality if they were working in the private sector they wouldnt last a second. What we need is some one to come in and rule them with an iron fist, sacking slackers on site and bull whiping the rest into shape.
If that doesent work the answer is simple, go down to belfast zoo and shave some monkeys and hire them to do there work.
They will work for peanuts which is what i hear most civil servants say they are being paid.
Posted by marty | 04.09.08, 15:15 GMT
It's extremely narrow minded to label all Civil Servants as people who abuse a very stringent sick provision, when it is clear that a small minority are largely responsible for the damning stats. These underpaid grades, have underpinned public services for years on what has now been accepted, a pay which has to be raised annually raised to meet Government set minimum pay levels. This backpay should be actioned as quickly as is reasonably possible to offset the poverty many workers are caught up in.
Posted by Paul O' | 04.09.08, 15:02 GMT
The bill is closer to £200m plus if the rumours circulating in Civil Service corridors are anything to go by. This is on top of the unfunded spending promises of Ministers which given the mood in Treasury will not be bailed out. By the time the Executive get back to their desks the baliffs will have arrived to clear the debts.
Posted by crownesq | 04.09.08, 13:46 GMT
How will find the civil servants, as they are all taking time off work on the sick?
Posted by Finbar | 04.09.08, 12:58 GMT
Perhaps when the civil servants are as efficient as the public sector and take less sick days, then back pay should be considered. Why should the public pay for peolpe who blatantly misuse sick day privileges and fat cats a the upper end of the civil servant hiearcy who misuse funds?
Posted by Michael | 04.09.08, 09:11 GMT