Tuesday 18 May 2010

That Evil Public Sector

I am torn by the obvious need to cut the public deficit and yet uncomfortable with the introduction of bonus restrictions on senior civil servants and NHS managers. The top 4000 public sector employees got an average bonus of £12,700, and NHS managers received up to 7% of their salaries. According to the Daily Telegraph cutting mandarin bonuses by 65% will save £15 million a year. Surely there must be bigger fish to fry.

That being said I am all for analysing who gets a bonus and why, but am very wary of knee jerk cuts reeking of populist symbolism especially when any discussion of cuts is always couched in terms of undoing the "evils of Labour's dying days".

Although the Civil Service has a much better reputation in the UK and continental Europe than in the US, it appears to me that what Messrs Cameron, Brown and Cable are working towards is to ensure that the best and brightest don't look to the Public Sector unless they are either imbued with some unbelievable desire for public service, or are independently wealthy.

It is interesting to see that Mr Will Hutton, the former editor of the Observer who was closely linked to New Labour will now be asked to tackle public sector pay. Good sop to the Centre-Left. As an unpaid position I should imagine the value is in image for the Government, and profile for Mr Hutton.

Then again he could start by commenting on the salary of Sir Alan Budd, the temporary Chair of the newly formed Office for Budget Responsibility- ~£40,000 for three months work. Funny that given Mr Cameron's stated determination to cut the previous government's £1.5 billion for management consultants (even if I agree with the sentiment!).

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