Post by earl on Jul 4, 2008 14:50:24 GMT
The latest increases in the expenses allowances paid to civil servants highlight just how out of touch with economic reality the public sector has become. As a result of the latest increases many civil servants will be able to boost their incomes by a tax-free €10,000.
What planet does the Irish civil service live on? In the week in which Finance Minister Brian Lenihan revealed a tax shortfall of €1.45bn in the first half of the year, civil servants' already generous mileage and subsistence allowances are increased by up to a further 4pc.
official
Mileage and subsistence is one of the great civil service rackets. The theory is that civil servants are compensated for out-of-pocket expenses when travelling as part of their official duties. The reality is a handy tax-free top-up to their already generous salaries.
From this week, civil servants who use their own cars when travelling on official duty will receive between 83.9 cent and 126.7 cent a mile depending on the size of their car's engine. True, this rate applies only to the first 4,000 miles travelled, after which it drops to between 45.5 cent and 61 cent per mile, but that still works out at between €3,356 and €5,068 per year for civil servants who drive 4,000 miles a year on official business.
And guess what? By some remarkable coincidence the vast majority of our mobile civil servants seem to manage their affairs so that their annual mileage comes in at bang on the 4,000 mile cut-off.
But that's only the start of it. Of course many of these civil servants who selflessly travel the highroads and byroads of Ireland on the public's business have to stay away from home overnight. That's another handy little earner for them.
Overnighting civil servants now receive €145.42 per night. This money is unreceipted. So, speaking entirely hypothetically of course, what is there to stop a less than scrupulous civil servant staying with family, friends or in a cheap B&B while still claiming the full rates? Absolutely nothing.
So if our civil servant who is already travelling 4,000 miles a year somehow manages to stay away from home on official business for 30 nights a year he receives a further €4,363.
And its gets better.
In addition to overnight rates, civil servants also receive large unreceipted wedges of our cash if they are out of the office for more than five hours on official duties. A civil servant out of the office for more than five but less than 10 hours receives €18.26 per day while a civil servant out of the office for more than 10 hours gets €44.81.
So going back to our civil servant, if in addition to travelling 4,000 miles a year and 30 overnight stays, he was also out of the office for between five and 10 hours for another 30 days and for more than 10 hours on 15 days, he would receive a further €1,208.
This would bring the total take up to between €8,926 and €10,621 tax-free.
Is there any other business that would hand over more than €10,000 a year to one of its employees without them having to produce a single receipt?
When he announces his cut-backs next week Brian Lenihan should start with the mileage and subsistence racket.
What planet does the Irish civil service live on? In the week in which Finance Minister Brian Lenihan revealed a tax shortfall of €1.45bn in the first half of the year, civil servants' already generous mileage and subsistence allowances are increased by up to a further 4pc.
official
Mileage and subsistence is one of the great civil service rackets. The theory is that civil servants are compensated for out-of-pocket expenses when travelling as part of their official duties. The reality is a handy tax-free top-up to their already generous salaries.
From this week, civil servants who use their own cars when travelling on official duty will receive between 83.9 cent and 126.7 cent a mile depending on the size of their car's engine. True, this rate applies only to the first 4,000 miles travelled, after which it drops to between 45.5 cent and 61 cent per mile, but that still works out at between €3,356 and €5,068 per year for civil servants who drive 4,000 miles a year on official business.
And guess what? By some remarkable coincidence the vast majority of our mobile civil servants seem to manage their affairs so that their annual mileage comes in at bang on the 4,000 mile cut-off.
But that's only the start of it. Of course many of these civil servants who selflessly travel the highroads and byroads of Ireland on the public's business have to stay away from home overnight. That's another handy little earner for them.
Overnighting civil servants now receive €145.42 per night. This money is unreceipted. So, speaking entirely hypothetically of course, what is there to stop a less than scrupulous civil servant staying with family, friends or in a cheap B&B while still claiming the full rates? Absolutely nothing.
So if our civil servant who is already travelling 4,000 miles a year somehow manages to stay away from home on official business for 30 nights a year he receives a further €4,363.
And its gets better.
In addition to overnight rates, civil servants also receive large unreceipted wedges of our cash if they are out of the office for more than five hours on official duties. A civil servant out of the office for more than five but less than 10 hours receives €18.26 per day while a civil servant out of the office for more than 10 hours gets €44.81.
So going back to our civil servant, if in addition to travelling 4,000 miles a year and 30 overnight stays, he was also out of the office for between five and 10 hours for another 30 days and for more than 10 hours on 15 days, he would receive a further €1,208.
This would bring the total take up to between €8,926 and €10,621 tax-free.
Is there any other business that would hand over more than €10,000 a year to one of its employees without them having to produce a single receipt?
When he announces his cut-backs next week Brian Lenihan should start with the mileage and subsistence racket.