McCreevy defends wide-ranging cutbacks

Finance Minister Charlie McCreevy has defended cutbacks revealed in his Book of Estimates last week.

Speaking during a Dail debate on the matter, Mr McCreevy said: "We must face reality. The pace of international economic activity continues to be sluggish amid uncertainty about the timing and the pace of any pick-up.

"Our economy is in good shape and in a good position to deal with the current slowdown.

"We are determined to secure the maximum value for expenditure so as to further improve the quality of service provided to the public."

However, Fine Gael spokesman Richard Bruton said Mr McCreevy's cutbacks will have catastrophic implications across all sectors of the Irish State.

"We're going to see, during this year, expensive beds lying idle with no patients," he said.

"We're going to see social workers confined to their offices because they have no petrol allowance.

"We're going to see outreach services for vulnerable people only open at office hours, when they're of little value.

"We're going to see housing bureaucracies administering schemes, but with no money or houses to give out."