Public resistance to spending cuts ‘extraordinary’

PUBLIC resistance to spending cuts has been “extraordinary” and not helped by a perception that banks are to blame for the financial crisis, according to the author of the Bord Snip report, Colm McCarthy.

Just weeks ahead of what is being flagged as one of the toughest-ever budgets, the economist said it is “not realistic” to think the public purse can be rescued without making necessary cuts to public sector pay, social welfare, and health and education spending.

Dr McCarthy told the Oireachtas committee on finance that living standards will return to 2004 or 2005 levels which, at the time, “we thought was a pretty good place”.