Cowen urges careful and critical analysis

TAOISEACH Brian Cowen has appealed to people to read the report of An Bord Snip Nua carefully and not react based on selfish interests.

He said social welfare cuts would have to be considered along with the 17,300 public sector redundancies suggested by Professor Colm McCarthy’s group.

But Mr Cowen said the electorate must realise the scale of the problem and the range of cuts Government has to reflect on in order to find €4 billion worth of savings in December’s budget. This included trade unions who he said remained part of a revised social partnership process which had begun in January despite threats of crippling industrial unrest.

“[I would like] for everybody to critically and carefully read the report and to consider it. It indicated the scale of the challenge that faces the country as a whole,” he said.

Reacting to the report for the first time at an Ogra Fianna Fáil function in Collins Barracks, Mr Cowen said the proposed cuts to social welfare and child benefit would remain on the table.

Bord Snip Nua said these should include a 5% reduction across the board and major changes to the entitlements of those claiming benefits.

“No area of expenditure is immune from consideration.

“You cannot begin, given the scale of the problems we face, by starting to suggest various parts of expenditure cannot be considered,” he said.

The Taoiseach denied there would be any difficulty selling the Bord Snip Nua package to his parliamentary party.

Last week he faced a firestorm from the Fianna Fáil parliamentary party at its last meeting before the summer recess. He and Finance Minister Brian Lenihan were severely criticised by their party colleagues for their handling of the economy. This undercurrent is likely to worsen if sensitive issues like social welfare and supports for the elderly are targeted.

Yesterday, the Taoiseach also addressed the issue of the Lisbon treaty referendum which will be on the agenda at a special Green Party policy vote today.

He said he would not canvass for members of the junior coalition partner to vote one way or another, but did believe the national debate on Europe should not be undermined by arguments on Bord Snip Nua or the economy.

“The Lisbon treaty ratification is central and fundamental to how this country contends with the problems it currently faces.

“It is a national issue, it is above party politics and I hope… people will see the big picture it represents,” said.

Later the Taoiseach attended the first meeting of his new innovation task force which groups leading figures from the business and university sector together to try guide economic policy decisions.

He said the country needed to learn the lessons of the recession and develop the sectors most likely to boost the economic recovery.