ET Now: You had earlier raised a point about the need for the government to link pay and performance. We will get you on that but more about the fisc. I think you are convinced that there will no impact on the fisc and any hit has already been factored in by the government?
ET Now: A point that you raised earlier as well and I want to bring it up just a bit because performance linked payments reduce the pay disparity between the public and the private sector especially the junior at the medium level. How do you think this impacts the private sector recruitments because then it is not performance linked?
Dr Naushad Forbes: It plays out very differently at different levels. At lower levels is where you actually have some of these issues that come up, at higher levels you do not have these issues. At higher levels in fact the public sector if you ask me pays their top people too little whether it is the heads of banks or senior people in public sector enterprises or indeed senior government functionaries I think they paid too little. At lower levels they probably paid too much certainly in terms of if you compare the market value and market wages there is a gap there, there is too little of a differential in the public sector, there is perhaps too much of a differential in the private sector. We need to meet somewhere in the middle and if we met in the middle where the private sector paid lower levels a bit more, the public sector paid lower levels less, the public sector paid higher levels more and the private sector paid highest levels less, we probably end up with a system that was both more equitable and more good in terms of efficiency.
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