Croke Park deal now 'not capable of being met'
Published 11/09/2010 | 05:00
THE country can no longer afford commitments made through the Croke Park Agreement (CPA), a former senior civil servant-turned banker warned yesterday.
While public servants have taken pay cuts and levies averaging 14pc, these may be restored through the agreement if savings are achieved after reforms.
Any money made through reforms can be refunded to public servants in annual pay reviews -- the first being in the spring.
But Willie Slattery, a 22-year veteran of the Central Bank who now heads up the Irish division of financial services giant State Street International, said we can't afford to restore these cuts.
"The commitments given in the CPA are not capable of being met," he said.
"In addition, under the CPA, the €20bn annual payroll bill for public servants can't be slashed until 2014, when our current deficit also stands at €20bn. And spending on the banking sector has also increased significantly since the agreement".
Mr Slattery added that the ban on jobs being outsourced is unsustainable.