Howlin vows further allowance cuts

Public Expenditure Minister Brendan Howlin has told Fine Gael TDs he will further cut the bill for public sector worker allowances.

The Labour minister outlined to his Coalition partners how his review of the allowances had separated them into three categories.

He told a Fine Gael party committee meeting there would be “more taken out in the budget” on allo-wances, party sources said.

Several younger Fine Gael TDs also asked Mr Howlin about the annual €1.5bn bill for the allowances, including Dublin South East’s Eoghan Murphy, Kerry South’s Brendan Griffin, and Galway East’s Paul Connaughton.

“It was the young guns, but low-key,” said one party member.

Fine Gael TDs last week had expressed frustration at the party’s weekly meeting over Mr Howlin’s climbdown on allowance cuts.

Mr Howlin abolished one out of 1,100 allowances for all workers, cutting costs by just €3.5m, despite his initial target to reduce the allowances by €75m.

Mr Howlin is currently reviewing recommendations from ministers to squeeze the maximum savings from the Croke Park Agreement, after the Taoiseach ordered departments to come up with further ideas to cut back the public sector bill.

His meeting with Fine Gael backbenchers lasted an hour and at least 15 people spoke, party sources said.