Alledged Savings through The interest Rate reduction

Jaysoose

Over the last week since the announcement of the alledged interest rate cuts on the bailout for ireland there has been every tom dick and harry and vested interest shouting for the 'savings' to be passed to the irish people.

Surely the goverment should be pushing on with any cuts/tax increases that need to be made so we get out various wage/social/local authority bills down to levels that will be sustainable in the long term. The frist thing we heard was the unions looking for reversals of cuts in salaries etc even though it has been indentified that the wages are unsustainable at current levels. Can these various groups not do simple maths and see that we could finally be making ground on this long and painfully drawn out process.

mike65

There are no savings, there will be less money leaving the system. That's not the same thing.

Jaysoose

I disagree if the goverment had agreed to allocate 20 billion (roughly) and now only have to pay over 16.5 then would it not be wise to continue on with the original figure and allocate it elsewhere within the economy?

Surely that is a saving in one sense?

Permabear

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Jaysoose

Permabear wrote: »

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Ok maybe savings is the wrong term to use in this case, i just dont understand the logic that is being used by the unions etc that we should immediately reverse the few cuts that have been imposed on the already overpaid public service.

The goverment has already made a huge error in the alledged agreement that there will be no further cuts as per the croke park agreement. The easing in interest rates shouldnt be used as an excuse by the unions to try and get back to the good old days and if the goverment doesnt push on with the cuts desperatly needed then its a massive oppurtunity missed.

Permabear

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