Fine Gael accuse Government of post-election cuts

FINE GAEL yesterday raised its suspicions that the Government may embark on a series of swingeing post-election cutbacks.

The main opposition party was responding to weekend media reports that Tánaiste Brian Cowen has told ministerial colleagues that growth in government spending will be almost halved next year.

The report in the Sunday Business Post also said that Mr Cowen, also the minister for finance, would also put pressure on the Health Services Executive to stay within its budgetary limits next year.

A departmental finance spokesman said that what Mr Cowen said at Cabinet meetings was confidential. He also pointed out that the Tánaiste has publicly said that there will be a slow-down in growth and that implementing the National Development Plan would be his main priority as finance minister.

However, Fine Gael yesterday claimed that Fianna Fáil were pulling the wool over the electorate’s eyes as it had done in the wake of the 2002 election.

“Once again we have seen the result of a Fianna Fáil election budget splurge,” said a party spokesman.

“The Government has moved from a position where it had a €900 million surplus this time last year has been turned into a deficit of €1.4 billion at present.

“It is that failure of planning that contributes to the haphazard public services,” added the spokesman.

Fine Gael claims that FF is repeating its tactic of five years ago, when there was an appreciable rise in spending in the run-up to the election and swingeing cut-backs immediately afterwards.

Yesterday’s report suggested that sources close to several ministers confirmed they had been told that the practice in recent years of 10%-plus increases in spending budgets would come to an end.

The Tánaiste presented his final strategy for the forthcoming budget to the Cabinet this week.

Spending is projected to increase by some€7bn this year, but is then expected to be shaved back to only €4 billion next year.