Coalition bottled gilt-edged chance for real, lasting change

BEFORE Brendan Howlin and Michael Noonan delivered a double dose of pain, the requirement was to downsize €61 billion of state expenditure in 2012.

Four previous budgets inflicted revenue-raising measures of €10bn. Diminishing returns from depressed incomes, weak consumer spending and growing unemployment mean the budget deficit of €16bn cannot be resolved through more penal taxation. The political context is an unprecedented Dáil majority of 60 seats and no requirement to face the electorate until 2014. Given short memories, this is the time to radically revamp government.

But instead of charting a bold new course, the Cabinet opted for caution. They bottled it. The Croke Park Agreement remains intact — no pay curbs or compulsory redundancies. It is like driving a car with the brakes on. This means 8,000 supernumerary administrators in the HSE remain, while tens of thousands of families will have to forgo their private health insurance due to the prospect of a 50% hike in premiums.