IMPACT criticised this week’s budget approach for taking yet more cash out of the economy instead of introducing a serious stimulus to create jobs and consumer confidence to boost incomes and exchequer funds. But the union said it was positive to see ministers acknowledge public servants’ huge contribution to Ireland’s deficit reduction.

The union also welcomed signals that public service staffing restrictions are to be eased, with the promise of extra recruitment in some areas next year.

In his budget statement, Minister for Public Expenditure and Reform Brendan Howlin acknowledged that payroll savings delivered by the Haddington Road agreement will be worth around €500 million in 2014 – in the region of 20% of next year’s budgetary adjustment.

He also announced a “reform dividend,” in the form of limited public service recruitment. IMPACT welcomed this and highlighted the need for new recruitment in health and social care, primary and mental health services, special needs provision, local authority services, and other areas that are crying out for extra staffing to improve services.

IMPACT general secretary Shay Cody said Minister Howlin’s statement was a timely reminder of the substantial contribution public servants are making to Ireland’s deficit reduction. “These substantial additional savings are arising because many public servants have had less in their pay packets since July 2013, while all public servants are working longer, and the vast majority are waiting longer for increments,” he said.

He said the Haddington Road measures come on top of 14% average pay cuts since 2009, a 30,000 reduction in staffing, and major cost-saving reforms delivered under the Croke Park deal, which together have delivered a €3.3 billion (17.7%) reduction in public service payroll costs between 2009 and mid-2013.

Commenting on the overall budget package, Mr Cody said that, while its limited stimulus and employment measures were welcome, they were insufficient to deal with the unemployment crisis.  “We should not continue to take billions out of an economy that badly needs a serious stimulus to create jobs and consumer confidence, which would generate exchequer revenue and help deal with the deficit,” he said.

The Irish Congress of Trade Unions (ICTU) said the budget was “not up to the challenge of kick-starting recovery and getting people back to work,” while the left-leaning TASC think tank said it included “a mixture of progressive and regressive measures.”  The union-backed Nevin Institute said 2014 budget measures could lower employment levels “by around 30,000 below what they would have been without this adjustment.”

Full budget coverage here.