Public services to get €3bn boost

The Government today announced it would spend an extra €3bn on public services in 2006.

Unveiling his second Book of Estimates, Finance Minister Brian Cowen allocated €12bn for health, an increase of 9%, and €7.2bn for education, a rise of 7.9%.

A sum of €12.4bn of the overall €48.5bn will be invested in the Social and Family Affairs Department.

Mr Cowen said up to €400m will be allocated in 2006 towards the bill for illegal nursing home charges.

“The Government’s fiscal and economic policies have transformed the Irish economy.

“Solid growth as a result of these policies will enable extra resources to be applied to enhance our public services in key areas that will both improve the capacity of our economy and look after the needs of our more vulnerable citizens.”

The minister provided a €2.3bn pre-Budget allocation for childcare in 2006 which will include extra child benefit payments and a total of 30,000 childcare places before 2007.

Mr Cowen said that spending increases in health would provide for service improvements in disability, primary care, The National Treatment Purchase Fund, emergency planning and medical education and training.

Education increases will provide 200 extra teachers in 2006 and 2007, he said.

Funding for Overseas Development Aid will increase in 2006 to €675m, which will put the Government on course to achieving its UN target of 0.7% of GNP by 2012.

Mr Cowen said he would be announcing additional funding in the Budget for social welfare improvements, corporate investment, childcare and care for the elderly.

Despite buoyant tax and VAT returns so far this year, he warned that there was no room for complacency.

“A number of risks and challenges need to be addressed including oil prices, interest rates and increased international competition for investment and in product markets.

“We have to continue with the prudent fiscal policies that have played a major role in bringing the economic and social success which we currently enjoy”.

The Offaly TD said current government policies underpinned competitiveness, supported growth and gave the economy the flexibility to deal with economic shocks.