Cash-starved ministers eye public pocket

GOVERNMENT ministers will have to dip into the public’s pockets to meet their departments’ spending demands, to be announced today.

Rises in fees and charges for public services so-called 'stealth taxes' are expected to be the order of the day after Finance Minister Charlie McCreevy announces spending plans for next year this afternoon.

Pay increases in the public sector, from benchmarking and partnership agreements, will swallow up the majority of the anticipated

2 billion increase in the Government spending estimates, meaning ministers will have to generate revenue to make up the shortfall.

While high-spending Cabinet members, Health Minister Micheál Martin, Education Minister Noel Dempsey and Social Welfare Minister Mary Coughlan, are guaranteed to get increased allocations, the double-edged sword will result in the public being hit for services.

Accident and emergency charges, the cost of private beds in public hospitals, the drugs refund scheme threshold, college registration fees, motor tax and environment levies are all possible targets.

Previously, the 'old reliables' in public finance terms described products hit with additional taxes at budget time, including cigarettes, alcohol and petrol. In recent years, to avoid cuts while also keeping taxes low, the 'old reliables' have also come to include those public services which can be easily hiked.

Last night, a Government spokesperson confirmed each minister has to clear their spending estimates through the Cabinet, including any revenue generating plans. Overall, current spending is expected to increase by around 6%. Mr Martin will get 890 million extra to spend next year, bringing total health spending above

10 billion. But 70% of this increase, around 625m, will go on pay rises for health service staff and a large proportion of the remainder will go on the medical card scheme, leaving little cash for improved services.

Equally, Mr Dempsey needs around 250m to meet wage increases in the education sector and faces the threat of strikes by teachers if funding for school building does not dramatically increase.