November 14, 2005

GOVERNMENT ISN'T THE ENEMY, THE BUREAUCRACY IS:

Treasury 'billions out' over pension costs (Hélène Mulholland and agencies, November 14, 2005, SocietyGuardian.co.uk)

The government has badly underestimated the cost of Britain's public sector pensions, according to a thinktank report released today.

The Institute of Economic Affairs' report says the true cost to taxpayers is £817bn - almost double official estimates of £460bn. [...]

The report comes just weeks after ministers dropped proposals to increase the retirement age for public sector employees from 60 to 65.


MORE:
Labour plots to cut power of its union paymasters (Christine Buckley, 11/14/05, Times of London)

TRADE UNION power in the Labour Party will be slashed drastically under plans put forward by one of the Government’s key figures.

Alan Johnson, the Trade and Industry Secretary, told The Times that a radical shake-up of the power structure is needed because unions are abusing their power by voting together and commanding policy.

Mr Johnson, a rising star of the Government and former union leader, wants the union vote at the party conference to plunge from 50 per cent to 15 per cent.

Tony Blair will broadly sympathise with a cut in union power, but fellow ministers will be surprised at Mr Johnson’s timing, as it risks further anger from union leaders and will create new rifts in the party while it struggles with rebellions from backbenchers.


Posted by Orrin Judd at November 14, 2005 8:51 AM
Comments

Hey, we finally beat out the UK in moonbattiness. Cops and firemen, among other public sector union workers, can retire after 20 years. Many are aren't even 40 yet. This was sustainable when the numbers were small and they were being paid peanuts, but now it's going to bankrupt us.

Posted by: erp at November 14, 2005 9:02 AM

erp,
local taxes are going to rise dramatically or services will have to be greatly reduced to pay those outrageously generous benefits. Perhaps this will be a mixed blessing in blue states. When property and sales taxes double, then the cost of being blue may be enough to drive these areas into the red- both literally and figuratively.

Posted by: Patrick H at November 14, 2005 12:59 PM

Yep.

Posted by: erp at November 14, 2005 2:59 PM
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