House of Representatives Meets on Friday to Officially Unfreeze Increments

Joseph Waight

The House of Representatives will meet on Friday and a number of bills will be tabled for debate.  Among them is the Public Sector Emoluments and Allowances Reduction (Amendment) Bill that seeks to officially end the increment freeze imposed on public officers and teachers. As we have reported, those increments were unfrozen on April first, but the House of Representatives must also go through its process to ensure the change is reflected in law. So, how much will be added to the public sector wage bill as a result? That is what reporters asked Joseph Waight, the Financial Secretary, when they caught up with him this morning.  Waight also spoke on the ongoing discussions surrounding pension reform.

Joseph Waight, Financial Secretary

“An average increment is about three percent. So it’s about three percent of the wage bill, and we’re looking at about twenty million or so to resume the increments.”

Reporter

“So, are you able handle it?”

Joseph Waight

“It’s available, it’s in the budget. Yes.”

Reporter

“What about pension, which has been described as breaking the bank for the public purse?”

Joseph Waight

“You know, we have done a number of studies and the conclusions are the same, that the current scheme is unsustainable going out in the future. The liability, the pension liability for the government going, if you going forward, is about seventy to seventy-five percent of GDP. Clearly, we can’t continue the problem. The problem is how do we make it sustainable? What do we do? What parameters do we change? We have to bring our labor along because it is a contract we have with, you know, so it has to be a negotiation to, to see, well, what can we do to make, put it in a sustainable footing, but at the same time, respecting the right and obligations that the government has to all workers and to our staff. Huh, at all levels.”