Monday, November 01, 2010

Torygraph stands up for victims of "brutal" cuts!

The Torygraph are up in arms for some victims of the public spending cuts being imposed by the ConDem coalition (http://www.telegraph.co.uk/finance/newsbysector/supportservices/8100744/Serco-isolated-as-supplier-squeeze-backfires.html).



That's the companies, suppliers of privateer Serco, who are being asked for a retrospective rebate of 2.5% (with the implied threat of no further contracts if they don't deliver) in response to Serco being asked by the Government to find savings from existing contracts.



The Government are upset too (since this rather exposes the half-baked "crowding out" thesis which leads them to believe that public sector cuts make room for private sector growth).



Although trade unionists should consistently oppose all the deflationary impacts of cutting public spending when aggreggate demand is already too low, I think I'll save my tears for the local authorities and benefit claimants facing so much worse (and, like most local government workers, I would make an exception to my opposition to such cuts if local authorities asked highly paid consultants for such a rebate.)



Local authority employees in England, Wales and Northern Ireland who haven't had a pay rise since April last year have already given our employers - in real terms - a "rebate" of over 5%, and now we face front loaded cuts of 28%. As soon as the Torygraph shows us any sympathy I'll be sure to blog a link...

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