Bord Snip recommendations to be published today

Plans for one of the biggest public spending cutbacks in the history of the State will be unveiled today.

The findings of the An Bord Snip Nua group are believed to outline billions of euro in savings for the public purse. The specialist team, headed by UCD economist Colm McCarthy, is expected to target public sector pay and staff, social welfare benefits, government departments and state bodies.

Reports this morning say the group has proposed €5.2bn worth of cuts, including a €1.5bn reduction in the social welfare budget.

It is also recommending the merger of local authorities across the country, leaving just 22 county and city councils nationwide.

Elsewhere, the group is reportedly proposing a €300m reduction in the HSE pay bill and hundreds of millions of euros worth of cuts in allowances for other state employees.

The Government, which discussed the report yesterday, opted to publish its details despite the inevitable backlash it will provoke.

The Opposition had strongly criticised Taoiseach Brian Cowen for not revealing its details before the Dáil adjourned for the summer.

Finance Minister Brian Lenihan said the group’s mandate was to examine exchequer spending across all departments and agencies to see where expenditure and staff savings might be made in the current financial crisis.

He said stabilising the public finances was a critical part of the renewal of the economy, adding both he and Government recognise the choices facing them were not simple or pain-free.

“Even after these measures, this year alone we will spend €20bn more than we will bring in taxes and other revenues,” said Mr Lenihan.

“That gap will be filled by borrowing money on the international markets, thus adding to our overall level of debt.

“Quite simply continued borrowing at that level is not sustainable.”

The Government is still only considering the report, which the Minister maintained will be an important contribution to the process of formulating Budget 2010 and subsequent budgets.

He asked people to read it carefully and critically, and avoid knee-jerk and defensive reactions to each and every suggestion raised.

“What we have to do now is reflect as a nation and make a further collective effort to address the problems that are there,” he added.

“I believe we can do it and will do it and we will emerge from it as a result a stronger, fitter and better economy.”

Meanwhile Fine Gael’s Fergus O’Dowd criticised the decision to publish the report on public spending the same day as a long-awaited state inquiry into care at the Leas Cross nursing home.

The Leas Cross Deaths Relatives Action Group maintains the HSE failed to act on major deficiencies at the home over a number of years and that relatives were lied to about conditions at the facility.

“This inquiry has cost over €2m and has been with the Government since June but the only day they could pick to publish it is the same day as the report most calculated to nominate media and public attention,” said Mr O’Dowd, the front bench spokesman.

“After all the promises from Government on Leas Cross that we have been hearing since 2005 this is the final insult.

“It strongly suggests an attempt to deflect attention from the report rather than revealing all so that we can learn the lessons needed to protect older people in nursing home care.”