How to solve the North Cyprus financial crisis in two years

BeeKeeper


Joined: 29/09/2009
Posts: 137

Message Posted:
03/03/2011 17:05

It has been suggested that some areas of the public sector in the TRNC are overstaffed and that big cutbacks could be made without the end customer (taxpayer) suffering any great inconvenience.



However, major cuts would are seen as impossible because there aren't the private sector jobs to pick up the slack.



If this is true, how about this as an idea.



(1) remove all the red tape which currently makes it very difficult to start a business.



(2) identify all the public sector workers who are performing roles which aren't absolutely necessary.



(3) give those people the opportunity of a lifetime. Offer to continue paying them in full for a whole year while they go and start a business - either on their own, or with friends/colleagues. To make the transition even easier, offer to pay them 2/3 of their previous salary in year two, and 1/3 in year three.



Would this work? If not why not? If so, tell the people who can make it happen. It would be a major international news

zcacmxi


Joined: 30/11/2008
Posts: 388

Message Posted:
03/03/2011 17:12

Is a good idea, but I can't see the staff going for it because:



1) They have lucrative final salary type pensions that they'd not want to give up.

2) They would be aware that working in the private sector would mean working more, e.g. no half days in summer time, lower salaries compared to public sector, etc, etc...

3) They would lose their "13th monthly salary".



Basically, it's a cushy number and they want to drag it out as long as possible...

BeeKeeper


Joined: 29/09/2009
Posts: 137

Message Posted:
03/03/2011 21:43

You're right - turkeys don't vote for Christmas.



But, according to Turkey's minister for Cyprus, Ankara may be preparing to allow the TRNC to go bankrupt (see http://www.bloomberg.com/news/2011-02-12/northern-cyprus-may-go-bankrupt-turkish-minister-tells-hurriyet.html)



If that happens, all the public sector workers will lose their jobs.



So someone needs to start negotiating pretty soon.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
03/03/2011 23:42

Not as simple as that. Turkey has to carry out the reforms come what may. The most unfortunate thing is that the most imcompetent PM ever is in power. He is not able to explain why the reforms are essential. Eventually it will dawn on people that the reforms are essential. Turkey cannot afford to let the Turkish Cypriots do what they like and go bust. At the end of the day they have to pay the salaries, so they have to be in charge.

ismet

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
04/03/2011 09:47

Let us hope, then, that the settlement talks are successful!

Geoff

Famagusta City

martinD41


Joined: 06/09/2010
Posts: 3001

Message Posted:
04/03/2011 09:52

At Last ! elko2 "Said IT".....Turkey "Pays the Piper"........... AND CALLS THE TUNE!!!

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
04/03/2011 10:00

BeeKeeper, excellent idea IF LINKED with the government's plans to reduce state wages and pensions. This reduction would make staying in the job less attractive than setting up a business or entering education on full pay. There is also a possibility of state employee pay rises after a year to reflect the money saved when those who left had used up their one year salary offer. It would work in EU countries.

TRNCVaughan


Joined: 27/04/2008
Posts: 4578

Message Posted:
04/03/2011 10:21

If you want logic and common sense, I'm afraid you've come to the wrong country.

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
04/03/2011 13:38

And once they had all been paid-off to leave the public sector the next elected government would discover they were short of staff to carry out the jobs, and hey presto.... they would return, on doubt an increase salary.

Nice idea though, but no cigar.

Michael

BeeKeeper


Joined: 29/09/2009
Posts: 137

Message Posted:
04/03/2011 14:40

Michael,



You comment suggests that there is no overmanning in the public sector in the TRNC and that it would actually impossible for the North to function without 70 percent of people working for the Government?



Beekeeper.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
04/03/2011 14:49

Parkinson's Law is at work here in TRNC. Parkinson would be very proud of TRNC as a clear proof of his law.

http://en.wikipedia.org/wiki/Parkinson's_Law

ismet

BeeKeeper


Joined: 29/09/2009
Posts: 137

Message Posted:
04/03/2011 16:01

That's lovely - outrageous but true.

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
04/03/2011 16:05

The TRNC government bodies, and the UKs National Health Service are prime examples of Parkinsons Law, and no matter how many good ideas are implemented both organisations will need to continually expand to meet their own demand.

I can vaguely remember an episode of the TV sitcom Yes Minister\Prime Minister which dealt with this.

Michael