Labour predicts further cutbacks

The Labour Party has predicted further Government cutbacks following the publication of the Department of Finance’s latest economic review and outlook.

The document revises Ireland’s predicted growth rate down to 3% and revises inflation predictions upwards to 4.5%.

It also highlights the weakened state of the public finances, with spending increases of 22% for the first seven months of 2002.

Labour’s Pat Rabbittee said further cutbacks will be needed if Finance Minister Charlie McCreevy hopes to achieve a budget surplus.

“Inflation is quite difficult at its present level, the decline in growth is more accelerated than we thought and if the minister is still talking about bringing in a budget surplus, then I think we anticipate further cutbacks during the remainder of the year,” he said.