Public Sector Pay - 1% Increases Will Cause Problems

Those of you that know me will be well aware that I am a Conservative supporter. I support the need for austerity in the UK because it is a path that needs to be followed for the long term future of this country. I am, however, pretty concerned with the plan for Public Sector pay going forward. When I say Public Sector I mean across the whole of the Public Sector and not just the NHS which appears to get all of the publicity when this matter is discussed.

Why am I concerned? I am concerned because the level of pay rises in the Private Sector is now running at an average of over 3%. Public Sector pay for the next 4 years will be restricted to a rise of just 1% per annum. This is over and above the pay freeze that has been in place already. This means that the differential in the pay between the Public Sector and the Private Sector that, historically, has been 2-3% in favour of public workers will not only be removed, not a bad thing, but will reverse in a very short space of time. The Private Sector pay will be higher on average than the Public Sector.

What will this mean? I am concerned that there will be a move away from working in the Public Sector by the more able members of staff. I am also concerned that it will make it much harder to recruit into the Public Sector if the pay on offer is not as attractive as in the Private Sector. I know that Public Sector staff are much maligned by some but, having worked with them for the last 4 years as a councillor, I can say that without them this country would grind to a halt very quickly.

Tough decisions need to be made by the government and they will continue to make them. I am just concerned that, perhaps, this extension of pay restraint at this low level is a step too far!

Greece To Kill Off Its Tourism Industry?

Greece is trying to strangle itself in my opinion. As a response to the need to pay off its huge debts it has decided to target the tourists that flock to the country and its islands every year.

It is proposing to double the rate of tax on accommodation and raise the rate of tax on the food served in restaurants from 13% to 23%. Officials are looking the possibility of implementing these huge rises. Up go the price of the holidays in Greece by a very considerable sum.

The worst idea, in my view, is that there is a proposal to remove the 30% discount on VAT which some of the Greek Islands receive at the moment. This is a very sensible discount given the extra costs of getting goods etc. to the islands and would be particularly damaging to the islands themselves.

Greece will still be a wonderful holiday destination but unfortunately it looks as though it is going to be a much more expensive one. Just how much of an effect would this have on the one industry in Greece that is a success, tourism? Looking for a reasonably priced holiday in Greece? Looks like you had better go sooner rather than later then eh?

Oh how I wish you could still pay in Drachma.