Ministers' pay rises to be postponed in radical savings plan

Finance Minister Brian Lenihan has unveiled his radical cost-cutting plan in a bid to save the Government €440m before the end of 2008 and a further €1bn next year.

Some of the key saving initiatives are listed below:

::Pay increases due to ministers, senior judges and civil servants have been put on hold until September 2010.

:: All public bodies – other than health and education – will have to cut their payrolls by 3%.

:: Consultant, advertising and public relations costs must be slashed by at least 50% by all departments and agencies.

:: The role of every quango will be examined to see if they can share services. Some could be amalgamated while others are abolished.

:: The buying of properties for government’s decentralisation programme has been suspended pending a report from the Decentralisation Implementation Group.

:: Major capital projects will be examined and prioritised.

:: Overseas aid will be cut by €45m.

:: Surplus staff in the Health Service Executive face been taken off the books following a review to be carried out by the Depts of Finance and Health. This scheme could run to other agencies where high staff numbers are identified.

:: A business plan for purchasing savings of at least €50m affecting all departments and public bodies will be produced by OPW and Finance Dept.

:: Savings will also be made when the Mahon Tribunal concludes.