Micweb Tonga Government Cannot Afford Any Further Civil Service Pay Increase or COLA Government Cannot Afford Any Further Civil Service Pay Increase or COLAThe Ministry of Finance and National Planning today underlined the importance for the civil service and the public to understand that Government, operating under tight fiscal constraints cannot afford any further pay increase or COLA within the approved 2014/15 budget estimate. The Parliament also adopted its resolution in August 2014 and supported Government’s position not to accept the additional higher COLA for the civil service. The Ministry stressed that Government faces a tight fiscal situation in 2014/15 where it continues to spend more than its domestic revenue including the medium term where the priorities of the 2014/15 budget estimate approved by Parliament addressed the public interest in more equitable manner respecting the rights of each and every Tongan. 2. “It is a legitimate question for civil servants to request for a further pay increase or higher cost of living adjustment on top of the already granted 6 percent COLA but, to move for industrial action against Government’s affordability is wrong and unhelpful to Government and the country’s financial situation as stated by CEO Tatafu Moeaki. It is not impossible for Government to increase spending in priority areas but this will require hard choices to reduce Government costs and/or increase revenue and more important to be sustained over time. Moeaki added that “each of these policy choices has implications for the people of Tonga and if decisions are not made thoughtfully, the consequences can be especially severe for the low-income and more vulnerable Tongans who rely more on Government programs. 3. The additional pay increase that some civil servants insist to be granted from this financial year will cost millions annually that Government does not have the money to fund and cannot afford. In less than two months away from our next election, further COLA and pay increase with multi-millions Pa’anga cost should be placed before the next Government to consider taking into account the economic and financial situation of the country for the short, to medium and long term. Mr. Moeaki further added that “the economic reality for the business community right now especially Tongan businesses is that pay raises are out of the question. The same applies to those employees serving outside of Government such as teachers where, any pay raise for Government teachers without any contribution to those teachers in church schools for example are contrary to respecting the rights of each and every citizen of Tonga. Those workers in the business community and church schools are going to have a very hard time swallowing that Government employees are entitled to higher COLA and higher pay increase. It is therefore advisable for the concerned employees of the civil service to be more patient with their requested additional COLA and pay increase. 4. Part of the problem is the suggestion that Government can raise new revenue immediately to finance the pay increase but its legitimacy and plausibility to be raised are in question and lacks credibility. END Issued by the : Ministry of Finance and National Planning. Source : Tonga Portal Like
Posted on: Mon, 13 Oct 2014 21:29:51 +0000
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