Bord Snip €5bn cuts toughest in State history
The Special Group on Public Service Numbers and Expenditure Programmes, An Bord Snip Nua, will print its sweeping report soon and deliver it to the minister for consideration.
It comes as Taoiseach Brian Cowen yesterday established a high-powered innovation taskforce to help refocus the economy.
Chaired by secretary general of the Department of the Taoiseach, Dermot McCarthy, the taskforce includes leading figures from the university and technology sectors.
The Taoiseach said that through the work of the taskforce he wants Ireland to become an “international innovation hub”.
However, he and his cabinet must first decide how much to adopt from the Bord Snip Nua report.
It is expected to say that the task facing Mr Lenihan is worse than when the original Bord Snip reported to Ray MacSharry in the late 1980s.
Then, there were easier targets and obviously wasteful programmes, but the clear-out of the ’80s means more fundamental cuts will have to be made now.
Reports yesterday suggested there will be a call to restructure ministries, with the Department of Arts, Sport and Tourism carved up and reorientated.
No ministry or agency will escape.
Enterprise will be told to radically rationalise its quangos and agencies.
The Department of Health is anticipating the bord will call for reductions in payments under the General Medical Card scheme.
Yesterday, Social and Family Affairs Minister Mary Hanafin conceded that welfare will not be spared and reiterated the budget promise that children’s allowance will be means-tested or taxed.
However, she said problems had been encountered with both options as means- testing would be an unwieldy exercise and taxing would be complicated by the probability of targeting the father’s income where a mother was not working.
She said rent allowance could be brought into line with falling market prices and suggested schemes would be restructured to focus on those in most need.
In other areas, Mr Lenihan will be warned about the rising cost of the national debt.
Ministers will be advised to sell off property to limit debt levels, while the off-loading of semi-state commercial companies will be suggested as a potential source of quick revenue.
After the report is circulated to ministers the suggestions will be brought to cabinet to see what options are most palatable.
It has not been decided whether Mr McCarthy’s report will be published. The report of the original Bord Snip was not.
Within weeks of Mr Lenihan receiving the report, the Commission on Taxation will deliver its recommendations on how the State should generate its income.
