Noonan: No more hardship than is needed

Finance Minister Michael Noonan has said getting the deficit reduction target below 5.1% of GDP in the budget will not cause any unnecessary hardship for households.

Mr Noonan said the final budgetary adjustment figure will be whatever is necessary to exit the bailout programme and that the public will be told on Budget Day.

Fine Gael and Labour have consistently said they would not cause any more hardship than was necessary, but asked whether beating the 5.1% target would cause further difficulties for households, Mr Noonan said that exiting the programme was the Government’s priority.

“We are running the numbers at present and we haven’t arrived at a final number but it will be less than €3.1bn. We have agreed that as a Government.

“Whatever is necessary to exit the programme will be done, and the figure, which in our judgment is necessary to exit the programme, is the figure we will arrive at,” he said.

“What I regard as necessary is bringing in a budget which will enable services to continue” and to make sure Ireland exits the bailout programme.

Meanwhile, Joan Burton. the social protection minister, confirmed there would be an “easement” in cuts in the big spending areas of social welfare, health, and education.

However, she wouldn’t be drawn on whether that meant cuts in social welfare would be less than the €440m anticipated.

“There is an easement because of the success of the live register and getting people back to work... that just eases the pressure on social welfare.”

Brian Hayes, the junior finance minister, said while still tough, the budget is aimed at giving people the message the worst is over.

“That’ll be an important message of hope to people, that we’re at the end of this process and as the economy recovers and grows, we’re going to move to a situation where people are going to go back to work — there’s real opportunities for our people.”