Brace yourselves for more, warns an under-fire Cowen
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TAOISEACH Brian Cowen yesterday warned that more tough cutbacks may be needed to deal with the economic downturn.
The stark warning came amid claims from opposition parties that the Government is covering up figures and hoping to engage in "drip-feed of sneaky cuts and stealth taxes" over the summer months.
The Government was further accused of a "gross act of deception" after it emerged that the Department of Education is not exempt from the major requirement to reduce payroll bills by 3pc by the end of next year.
Education Minister Batt O'Keeffe yesterday revealed that third-level institutions and VECs will have to slash their pay bills, only 24 hours after the Taoiseach and Finance Minister insisted otherwise.
The move now puts the Government on a serious collision course with school management bodies and university presidents, who are adamant that they are already stretched financially.
Last night, following an afternoon and evening Dail debate on the cutbacks, opposition parties claimed the harsh economic measures would inevitably lead to the laying off of teachers and nurses countrywide.
Savings
Despite the Taoiseach's insistence that individual ministers would outline how savings of up to €1.5bn will be achieved, confusion and questions still hung over much of its economic measures last night.
During the last Leaders' Questions in the Dail before the summer recess, Mr Cowen did warn, however, that more "savings" are possible.
"We are not suggesting that this process is now finito, that this is the end and that all members can sit back until next February. We have to manage this serious situation, and we intend to do that," he told the Dail.
Under the measures designed to yield savings of €440m this year, €1 in every €3 will come from the Department of Health.
Health
Some €85m of the €144m health savings will come from the budget of the delayed Fair Deal scheme. Another €38m will come from the slower roll out of projects, and €21m in administration costs.
The withdrawal of €85m from the nursing home scheme was last night described as "sacrilegious" by Fine Gael leader Enda Kenny.
He further claimed that people no longer believed the "false statements of assurance from a discredited leader and a discredited government".
Other measures announced yesterday included a €20m saving in the Department of Transport on capital projects. Some €13m will be saved under the Regional Airports budget, while another €7m will be yielded from the slow progress in purchasing sites for the Metro North project.
The Department of Social and Family Affairs also aims to yield €25m from investigating those who defraud the system. Of the €8.7m savings in the Department of Justice, €5.5m is expected to come from greater efficiencies across its 30 state agencies and bodies.
Last night, there was speculation that the Government might follow a model similar to the UK and amalgamate organisations such as the Equality Authority, the Human Rights Commission and Data Commissioners into one 'super agency'.
A spokesman for the Justice Minister said that while there would be meetings with senior management in the coming weeks to examine where savings could be made, nothing was currently being ruled in or out.
Despite opposition criticisms, the Taoiseach insisted the Irish economy was better equipped now than during the 1980s and could offer a "comprehensive welfare system" to support those most at risk
"By making the right decisions, we have a greater opportunity to emerge from the current difficulties within the next couple of years and return to a positive, stable growth rate as predicted by the ESRI and other independent commentators," he said.
"Anybody who experienced the difficulties in getting a job during the 1980s will understand why we have to take tough decisions now to ensure we continue to enjoy the fruits of our hard work."
Mr Cowen said €50m would be yielded through efficiency measures; €21 million from savings on advertising, PR and consultancy expenditure; and €10 million from payroll savings. The remaining €360m will come from savings on non front-line programme expenditure.
- Aine Kerr and Fionnan Sheahan
