Public sector salaries cost too much, says economist

According to a study conducted by a senior lecturer in economics at DCU, public servants in Ireland are paid more than in other OECD countries.

Leading Irish academic Anthony Foley says the picture that emerged from his study shows huge amounts of taxpayers' money being soaked up by the Departments of Health and Education - a situation which is crippling the Irish economy.

Between 1998 and 2007 the pay bill for the Department of Health increased by 193 per cent (€2.4bn to €7.2bn), while the pay bill for the Department of Education increased by 155 per cent (€2.2bn to €5.6bn). However, it is not frontline nurses and doctors that account for the vast majority of increases in staff numbers in the Department of Health, but rather administrative/ management employees.

"Public-sector employment growth has greatly exceeded the growth in population," Mr Foley says.

The DCU academic also points out that (prior to the last round of public pay increases) public-sector workers in Ireland earned an average of €50,000 a year - 32 per cent more than private-sector workers' average wage of €38,000.

Further information and discussion of Anthony Foley's report can be found in the current issue of Administration.

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