£6bn public sector cuts is ‘an economic wrong turn’, says Unite
24th May 2010
The £6 billion worth of public sector cuts announced today
(Monday 24 May) shows that the coalition has taken ‘an economic
wrong turn’, Unite, the largest union in the country, has said.
Gail Cartmail, Unite assistant general secretary for the public
sector, said: ”Within a fortnight of coming to office, the
coalition government has taken a fundamental economic wrong turn by
sucking £6bn out of a still fragile economy.
”While the cuts, such as reductions in civil servants’ travel,
management consultants and quangos, may appear to be peripheral to
the central deficit debate, this is the harbinger of some very
painful cuts that will be coming in the budget on 22 June and in
the comprehensive spending review in the autumn.”
Unite said there were two economic models that the government
could have followed - pump priming and maintaining demand by
government expenditure, or axing public services to placate the
City.
Gail Cartmail said: ”The government is paying its expected
homage to the City and the so-called ‘markets’, instead of putting
the full emphasis on maintaining jobs and economic recovery.
”Investment to stimulate the economy has to come from somewhere.
If the private sector is not investing sufficiently in communities,
the only other avenue is the government.
”In many communities, the public sector is the major employer.
The £6bn worth of cuts will translate into job losses very quickly,
which, in turn, will add to the government’s financial problems by
increasing unemployment and welfare payments.“
Unite said that recent TUC research showed that 29 per cent of
public expenditure goes directly to the private sector; therefore,
a 10 per cent cut would mean a loss of £16.9bn to the private
sector.
The Association for Public Service Excellence (APSE) says that
for every £1 of public money invested in public services through
direct employment and purchasing of supplies and services, a
further 64p is generated in the local economy.
Gail Cartmail said: ”In taking the axe to the public sector, the
new government is starting to abandon the Keynesian economic model
– which is ironic given that Maynard Keynes was a life-long
Liberal.“
ENDS
Notes to news editors:
For further information, please ring: Gail Cartmail 07768 931
305 or Shaun Noble, communications officer, on 020 7420 8951 or
07768 693 940
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