Mixed reaction to Book of Estimate figures

There has been a mixed reaction to the publication of the Minister for Finance's Book of Estimates.

Fine Gael's spokesman on the Environment and Local Government, Bernard Allen, says the Government is trying to introduce poll tax by the back door.

"The local Government fund, that is the funding made available to local authorities, will not even get an inflation increase for 2003, and in effect this is a reduction of almost 5% in real terms.

"A substantial increase in local service charges and commercial rates is imminent, and the scale of the increase will remove the last fiction that local charges are for services or refuse.

"What we are now facing is a poll tax."

Economist with Friends First, Jim Power, says Charlie McCreevy has chosen to cut spending rather than increase taxes.

"The 2% target in growth in spending for next year is very stringent, but it does signify very clearly that Mr McCreevy does intend to correct the public finances, and the burden of that correction is going to fall on spending rather than taxation.

"What it means in effect is on December 4 when he stands up to deliver the Budget - the tax increases will be pretty tame."

Charlie Reilly, president of the Irish Cattle and Sheep Farmers' Association, has expressed concern that the 9% cut in agricultural spending will impact directly upon vital services such as Teagasc and Bord Bia.

The ICSA president said: "Given the difficulties faced by the drystock sector, more not less investment in marketing and promotion of beef as well as research, advice and training, is needed".