I must have it wrong!

Because if I don’t, then by the Governor signing the Pension –holiday into law, will put the burden of the Government budgetary squeeze squarely on the backs of the working class in the private sector.

Follow my reasoning and let me know where I am making a mistake:

• Government budget reveals a deficit
• The Government/ Civil service is unable to borrow more or make sufficient cuts in Government expenditure.
• The focus is on increasing revenue.
• Government decides to increase most fee’s, especially work permits.
• Private sector businesses howl at the rising cost of doing business.
• Government now proposes a “voluntary” pension holiday, no, not for civil servants to cut expenses, but for the private sector, to make the cost of fee’s and permits more palatable.
• Private sector employers will approach their employees with the proposal to cut their remuneration by 5%. (No employer contribution to pensions)
• Employees that will not agree “voluntarily” will most likely face redundancy!
• Government will assist employers tacitly by keeping the backlog of cases at the Dept. of Labour Relations long enough so that complainants will run out of funds and leave the Island before they could get a resolution to their complaints of unfair treatment.
• The employer has to hire another employee, perhaps on a work permit again, thereby adding more money to Governments coffers.
• Neat!

By this chain of events you can see why I feel that the working class will pay for the funding shortfall of government.

I am not even addressing the plight of the local employee who is deprived of a potentially significant chunk of pension money s/he had hoped to have on retirement!

Please tell me I’m wrong!  

Peter Schmid