By Paul Gosling
23 July 2009
Public spending cuts of 8.5%, involving ‘initial reductions’ of 17,300 jobs, have been proposed to the Irish government to help get its public finances under control.
The measures were put forward by economist Colm McCarthy at the request of Finance Minister Brian Lenihan, who called for a national debate.
McCarthy’s proposed cuts amount to €5.3bn, compared with the €4bn of cuts by 2010 that Lenihan had indicated were necessary. Irish public finances would be in deficit by 10.75% of gross domestic product after the cuts, against the European Union’s 3% deficit limit.
Lenihan said: ‘All of us, including those of us in public administration, will have to accept that the old ways of doing things need to be looked at afresh, so that we can deliver excellent public services with dramatically lower levels of resources.’
The largest cuts are e1.85bn from social and family affairs and €1.23bn from the health and children ministry. The Family Support Agency would close and some benefits entitlements ended. Hospital and care home charges would increase and more use made of generic drugs.
One department – Community, Rural & Gaeltacht Affairs – would be abolished. The activities of another – Arts, Sport & Tourism – would be extensively cut and potentially transferred to other departments. The Office of the Minister for Integration would close. National and local economic development agencies would be merged into the existing Enterprise Ireland.
Mergers and rationalisation would take place across a range of other functions, including regulators, ombudsmen and employment advice. Town councils and regional authorities would be abolished and the remaining 34 city and county councils rationalised into 22 single-tier councils. The local government auditor would be merged with the main public sector auditor.
Savings of e25m are earmarked from the amalgamation of small primary schools. All non-commercial public bodies would surrender surplus property for disposal.
McCarthy supported previous proposals to raise the minimum pension age for public sector workers including the Gardai (police) and teachers, and to increase staff pension contributions. The Garda pay bill would be cut by e50m. There are also proposals to cut foreign aid, close embassies and reduce the involvement of defence forces overseas.
Trade unions have said they would resist any attempt to cut social welfare payments or pay rates.
23 July 2009
Public spending cuts of 8.5%, involving ‘initial reductions’ of 17,300 jobs, have been proposed to the Irish government to help get its public finances under control.
The measures were put forward by economist Colm McCarthy at the request of Finance Minister Brian Lenihan, who called for a national debate.
McCarthy’s proposed cuts amount to €5.3bn, compared with the €4bn of cuts by 2010 that Lenihan had indicated were necessary. Irish public finances would be in deficit by 10.75% of gross domestic product after the cuts, against the European Union’s 3% deficit limit.
Lenihan said: ‘All of us, including those of us in public administration, will have to accept that the old ways of doing things need to be looked at afresh, so that we can deliver excellent public services with dramatically lower levels of resources.’
The largest cuts are e1.85bn from social and family affairs and €1.23bn from the health and children ministry. The Family Support Agency would close and some benefits entitlements ended. Hospital and care home charges would increase and more use made of generic drugs.
One department – Community, Rural & Gaeltacht Affairs – would be abolished. The activities of another – Arts, Sport & Tourism – would be extensively cut and potentially transferred to other departments. The Office of the Minister for Integration would close. National and local economic development agencies would be merged into the existing Enterprise Ireland.
Mergers and rationalisation would take place across a range of other functions, including regulators, ombudsmen and employment advice. Town councils and regional authorities would be abolished and the remaining 34 city and county councils rationalised into 22 single-tier councils. The local government auditor would be merged with the main public sector auditor.
Savings of e25m are earmarked from the amalgamation of small primary schools. All non-commercial public bodies would surrender surplus property for disposal.
McCarthy supported previous proposals to raise the minimum pension age for public sector workers including the Gardai (police) and teachers, and to increase staff pension contributions. The Garda pay bill would be cut by e50m. There are also proposals to cut foreign aid, close embassies and reduce the involvement of defence forces overseas.
Trade unions have said they would resist any attempt to cut social welfare payments or pay rates.
