Department wanted more savage cuts

SUBMISSIONS made by the Department of Finance to An Bord Snip Nua show that it proposed more savage cuts in expenditure than were eventually proposed by the board.

The Special Group on Public Service Numbers and Expenditure Programmes, which was chaired by UCD economist Colm McCarthy, delivered its report to the Government in July.

The Department of Finance suggested welfare rates be cut next year to reflect reductions in cost of living in its submission to the McCarthy group. Failing that, it proposed freezing rates in 2010 and 2011. The McCarthy report proposed cuts of 5% to social welfare rates which would save €850m a year.