Noonan told large projects face cut over debts

EXPENSIVE large-scale capital projects first mooted during the boom may have to be abandoned to help stabilise our debts, the secretary general of the Department of Finance has warned.

In a briefing note to Finance Minister Michael Noonan, Kevin Cardiff said difficult decisions will be required in all areas of policy, including further reductions in expenditure.

“This includes the cutting back of programme spending, firm control of pay and numbers and the abandonment of expensive large-scale capital projects,” Mr Cardiff wrote.

Mr Noonan was also warned that the domestic economy could perform “weaker this year than thought” on foot of limited information that Mr Cardiff said had come to hand since November.

“If this is the case, then there may be some negative consequences for the fiscal position,” Mr Cardiff wrote.

However, in a slightly positive note, the exporting side of the economy is performing more strongly than was previously thought “and this is a positive,” Mr Cardiff said.