NIGEL Boddy (Mail, September 6) said that if the interest rates on government borrowing go up from two per cent to five per cent it is possible that a future government may not be able to pay public sector pensions at all.
Sometimes Nigel reminds me of the White Queen in Alice in Wonderland who proudly claimed that she sometimes believed six impossible things before breakfast.
Britain’s national debt is huge, ie £1.1 million million probably rising to £1.5 million million by 2017, but I see no possibility at all of any future government telling retired and existing armed forces personnel, post office workers and civil servants that they will have to live on nothing more than the State Pension when they retire.
Nigel said the money will run out in 2017 unless we make rational decisions now.
He wants a debate on what level of public sector pensions can be afforded.
We don’t need a debate on that in my view.
Their pensions should be protected.
What we do need is a dramatic reduction in wasteful government spending so that public sector pensions can continue to be paid in full.
The Government should start now by scrapping the uneconomic HS2 railway from London to Birmingham, Manchester and Leeds, and by cancelling the construction of expensive and unreliable wind farms which drive up the cost of electricity to homes and businesses.
What we need instead is investment in profitable projects which create jobs.
Not investment in hopelessly unprofitable schemes.