Public-Privatepay gap too wide, says IoD

Latest statisticsshowing that pay growth in the public sector has reached 5.6% compared withonly 3.1% in the private sector was criticised today by the Institute ofDirectors (IoD).

Commenting on thedisparity, Graeme Leach, Chief Economist at the IoD, said:

All the indicationspoint to productivity growth being stronger in the private sector than the publicsector, a result primarily of the strong growth in public sector employment. Ifpublic sector pay awards reflected productivity growth, that would be fine, butthe reality is that they dont. One has to wonder if the tax-payer is receivingvalue for money."

Ends 12.11.03 No.206

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Noteto editors

TheInstitute of Directors is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs