Your country needs you

Interviews by Ken Sweeney and Martin Frawley

Well-known people in business, media, law, the arts and politics list the sacrifices they would be willing to make to save the economy

Fergus O' Connell, MD of management consultancy firm Eyes on the Prize (ETP) and author of 'Work Less, Achieve More'

Boyzone member Mikey Graham

Labour MEP Proinsias de Ross

Economist David McWilliams

Gerald Keane, Solicitor

David McWilliams, Economist

"If I was being paid by the state I would take a pay cut but I'm not. If you are being paid by the state, you are obviously adding to the deficit. If you are paid by someone else and you pay taxes, your pay is detracting from that deficit. So let's analyse it properly. There is a huge difference.

"In a large state organisation your payment adds to the government's dilemma. If you work for yourself, your taxes detract from the deficit and therefore help the government. That's the way you should look at it, so you just have to work harder.

"If I was getting an artist's tax exemption at the moment would I give it back? Yes. Why not? I qualified for one of them two years ago.

"I think taxes have to go up. We can't keep borrowing because that means you just pass the responsibility onto the generation coming behind you."

Gerald Kean, Solicitor

"I would have no problem with child allowance being abolished for people with salaries over a certain figure, say ¤75,000. I have never collected children's allowance. We should not be getting children's allowance because I am well-off enough to do without it.

"Secondly, there isn't much capital gains tax happening at the moment but I would have no problem with capital gains tax being increased to 20% or 30%. Thirdly, I would have no problem if the top end of tax, which I'm on, were increased up to a maximum of five percent.

"The most important thing I would do is give my business expertise for free to the government on the understanding that I would be given full cooperation to come up with ideas and plans to save in certain areas because there is wanton waste."

Fergus O' Connell, MD of management consultancy firm Eyes on the Prize (ETP) and author of 'Work Less, Achieve More'

"ETP runs a two-and-a-half-day course called 'A Little Planning is Better than a Lot of Firefighting', for which we charge €1,500 per participant. As part of my contribution I have written to taoiseach Brian Cowen saying that he can send any number of civil servants to the course for an all-in fee of €2,540.

"Last year, three people from the department of finance attended the course at a cost of just under €5,000 so my offer now to Cowen would be a 50% savings while also giving civil servants some good advice on how to approach the current crisis.

"I have also written to Cowen offering to analyse free of charge the government's top 50 projects to see whether they are heading for disaster or not. Cowen did reply expressing some interest but there has been no follow-up as yet.

"Using the analytical measure we use to assess projects, the plan released last week fails on all counts. It has no clear objective beyond slicing €2bn off expenditure with no details on related objectives. Beyond a press release, there is no detailed plan with a list of measures, and there is no Winston Churchill-like figure out front to drive the plan forward.

"This is the second great depression we are in but the government is just moving a few decimal points around the place."

Ronan Ryan, Owner, Town Bar & Grill

"All my senior staff, including myself, have taken a 10% to 15% cut in pay and in my own case I have taken a much bigger pay cut. I know we are all going to have to ride it out. I think it's impossible to read a newspaper now without ringing the Samaritans two minutes later.

"The biggest bill is the public sector and they need to be reined in but that will never happen because people feel sorry for the gardaí and the nurses. You're on a hiding to nothing. So we just have to borrow and rough it out.

"We had the lowest level of debt going into this of any country. All we're doing is accentuating the negative. Poland will never supersede Ireland as a location for businesses; we're five hours from New York, five hours from Moscow. Bang in the middle."

John Douglas, General secretary of the Mandate trade union representing shop and bar workers

"I would be prepared to contribute more but it would have to be in the context of an overall social solidarity pact which would protect the most vulnerable who are least able to pay, with the most coming from the top earners".

Oliver Hughes, Publican and businessman

"I don't think anyone minds a little bit of pain as long as the pain is across the board. I think there is a big worry about the public sector. The private sector is battening down the hatches and we don't see any of that in the public sector.

"We're in the front line, cutting our prices, looking at our food offering. It's not simply about prices, it's about offering the customer what they want so when they go out, it doesn't cost them an arm and a leg but they have a good experience."

Mikey Graham, Member of Boyzone

"I'm up for helping the country get over the situation we're in. That said, I wasn't a member of Boyzone for the last eight years. I'm just back in it now.

"We all have to pull together and get the country out of this. I pay my taxes, a huge amount each year; almost half of what I earn goes on tax. I'm already contributing a significant amount with the other guys in Boyzone and none of us has a problem doing that, but I don't know why the people are being asked what can they do? This isn't the public's mess. All this is the government's fault. Where is all the money they made in the good times?"

Paddy McCartan, FG councillor and optician

"I would be prepared to make my contribution in the form of extra tax or a 10% pay cut but I cannot speak on behalf of my fellow councillors, many of whom rely on their councillor's income.

"At around €16,000 a year plus allowances for what is in effect almost a full-time job, it is a relatively poor income. You couldn't live on it. But as public representatives we have to lead by example and I don't think it's right that serving government ministers should be receiving a pension.

"A councillor's wage is linked to the salary of senators who have been asked to take a 10% pay cut. This issue arose at the council meeting last week and while there was some jumping on the bandwagon, no decision was taken.

"My income as an optician pays for my job as a councillor but even opticians will be docked 8% of the fees we charge the departments of social welfare and health for glasses following Brian Cowen's expenditure adjustments."

Jill O' Neill, PR for property agents Sherry FitzGerald

"Given the extreme pain those working in property have already taken in the form of a cut in wages and drop in business, I don't think anybody would be prepared to comment."

Sean Connick, Fianna Fáil TD for Wexford

"I would be prepared to put some money into a low interest-yielding national investment bond which could then be used by the government to address the current recession.

"This was proposed by the Irish Congress of Trade Unions and I thought it was a very good idea in that it would encourage Irish citizens to contribute to their own country when it is needed most.

"From talking to people here in Wexford I know there are plenty of people who would be prepared to do the same from those with only a few bob right up to those who made a lot of money during the boom.

"I didn't get into politics for the money and I have no difficulty accepting a pay cut. But it depends on the service people expect. I subsidise my constituency office from my TD's salary so if it's cut any further, I may have to cut back on the services I provide from my office".

Proinsias de Rossa, Labour MEP

"I'm a PAYE worker and currently pay the highest rate of tax, but I would be quite happy to pay more tax if it is required to maintain education, health and other services. The view in Brussels is that Ireland's attempt to confront the recession by trying to balance the books is driven by panic and, bar Greece, is at odds with the approach across the EU. The government should be borrowing to stimulate the economy rather than cutting it back.

"If the economy is going down the tubes you don't improve it by squeezing it further down the tubes. Sacking nurses and teachers and taking money out of the economy is not going to solve the problem. It will make it worse. But the government is unable to think beyond the narrow ideological parameters they have operated within over the last 20 years. This requires a complete shift of approach."

Amanda Brunker, Journalist/Novelist

"As a part of the Independent newspaper group, I've already taken a pay cut. I knew it was what we had to do. My way of beating the recession is working as many angles as possible. I have several different careers.

"I couldn't afford to survive on my journalist's income. That's why I try and keep my fingers in as many pies as possible. I don't drive a fancy car and I don't spend a lot of money on flash clothes. What I have done is work my butt off so I can pay for a nice home for my family.

"I did get an artist's exemption on my book but no, I'm not giving that back. I pay huge taxes on all my other work. I work my butt off till 12 o'clock at night when people are normally in bed. I'm PAYE and also self-employed for all the other TV stuff and modelling. This is like a third income and I'm not trying to say poor me. I donate to charity, I do charity work all the time. I have taken a pay cut for my journalist's job also I'm trying to stay upbeat which is my contribution to keeping us out of doom and gloom."

February 8, 2009

Comments

#1 Debs commented, on February 8, 2009 at 11:58 a.m.:

David McWilliams/Ronan Ryan...I doubt you're left with €100 a week to spend! That's the reality. Bank executives will still get their bonuses and ESB and BOI get pay rises! Why is it only some people are feeling the pain? By the way, public servants pay taxes too. Why not stop public service bashing and work together to get things going again.

#2 mucksie commented, on February 8, 2009 at 1:46 p.m.:

I would be interested to hear Proinsias De Rossa's views on where exactly the stimulation should be applied. Obviously construction is a no-no, also education is another black hole (as it currently). Unless you are talking about overhauling the education system from primary level up - because at the rate we have been going over the last 90 years, we havent been churning out too many high grade individuals - mathematical geniuses, world altering scientists, etc. I agree with D McW. that we cant keep borrowing because that is passing the buck (a great irish trait) to the next generation.

We dont need pay cuts or tax incentives, eurobillion loans or public sector rationalisation - actually we need all of these things, but underneath it all we need a cultural overhaul. We need to get away from the "Irish" way of doing things, the shortcut taking, the greed, the self serving nature, all the above and redefine what it is to be Irish that makes us stand above the rest of the world and make us attractive for future sustainable investment, and we need to do this from the top down. As for the health service, we only need to look at the argument provided by the hospital consultants to see the problems there - these guys are being asked to provide 24hr cover (shift work) so that hospital facilities are used to an optimum level, increase their working week from 33 hours to 39 hours (a standard working week by most measures), and to take a pay cut from 80k? is there anything unreasonable about these items - I think not. But where do we start, who do we turn to, local politicians are useless, they all eat from the same trough, and short of a few individuals most have their own interest before the public who elected them.

#3 mmoroney commented, on February 8, 2009 at 7:44 p.m.:

the government is proposing to invest 7 billions in the irish banks and receive 8% interest. Ihave a few euro on deposit with an irish bank on which I get 2%. Any hope Irish deposit holders can get the govt. rate

#4 anon commented, on February 8, 2009 at 8:28 p.m.:

As a Public Servant,I was not aware that I was twinned with some unknown individual in the private sector,who if he/she lost their job I would take a 10% cut in my salary. My "twin"never contacted me during the good times-in fact I am still wondering if I am twinned with someone in Dell or why not the Banks?. It seems that similar to a legal charge it is a floating arrangement.Also IBEC represents Private Sector Employers interests NOT individual Private Sector employees. Let us not be fooled by this divide and conquer line of Turlough O'Sullivan.

#5 Mike the realist commented, on February 8, 2009 at 9:29 p.m.:

Vote FF out of government asap. Simple.

#6 James commented, on February 9, 2009 at 11:51 a.m.:

The civil service should and could be reduced by at least 40% or again, just get private sector to run the country.

#7 Gary commented, on February 9, 2009 at 12:16 p.m.:

I have never voted for FF in my life, but I find the knee jerk vote FF out of power line being trotted out as near sighted and even idiotic. Is there anyone in opposition who has shown even a remote understanding of what needs to be done, they are bigger clowns. Voting out the government will just send a signal to the world that we are in a state of panic. Bide your time...

#8 Jay commented, on February 9, 2009 at 5:03 p.m.:

Sorry James if you removed 40% workforce from every Government Department, Agency, Authority or any other organisation staffed by Cilvil Servants the State would collapse.

#9 NiallMcC commented, on February 9, 2009 at 9:44 p.m.:

It's all very well saying cut the civil service by 40% but bear in mind that that will mean paying for redundancy payments, more people on social welfare adding to the deficit, further reduced consumer spending and therefore prolonged recession.

#10 Gary commented, on February 10, 2009 at 11:26 a.m.:

a 40% reduction is clearly nonsense, but there needs to be some acknowledgement from the public service that some staff cuts are going to be necessary as the state simply does not have the money to maintain them - I'm not talking about front line staff but there are thousands in administration and other areas that are not required. Start the cuts with the pay packets of high level staff, and please dont go on strike - it will drive those of us on minimum wage and the unemployed mad.

#11 john commented, on February 11, 2009 at 12:13 a.m.:

the public sector is overweight and out of shape. It is about time the government got real and decided to send it for a good workout. The public sector is paid to much in comparison to the private sector. Would a employee say to their boss in the private sector "no i will not take a pay cut?" I don't think so as you would soon find you would be out of a job. The public sector needs to wake up to reality. They have been mothered for to long by this government in the good times and think they are immune to the bad times.

#12 JimmySh commented, on February 11, 2009 at 6:20 p.m.:

If you're going to cut public sector and or private sector wages, it makes more economic sense to limit losses to the higher earners. As higher earners have a lower marginal propensity to spend, a cut in their earners will have a less disproportionate negative effect on consumer spending than cuts on the lower earners. I have yet to hear any economic commentators or politicians raise this issue as an argument for restricting cuts to higher earners. One wonders if any of them possess any knowledge of economics.