All development projects re-examined as part of Govt spending review

All capital projects - from the planned Metro to schools and hospitals - are to be re-examined as part of the Government's spending review.

Last night, Ministers agreed to come up with savings across all departments by September.

Meanwhile, the IMF's downgrade of growth forecasts here is likely to dominate a meeting between the organisation and Ministers today.

Ministers last night agreed the terms of reference for the review and promised to complete the process by the Autumn.

Projects deemed to be luxuries will be scrapped, state agencies face the chop or being amalgamated, while administrative and back-office functions will have to be rationalised and shared.

More than day-to-day spending is under the microscope - a whole new cpital investment programme is likely once every other project is analysed.

Minister for Public Expenditure and Reform, Brendan Howlin said "everything is being looked at again".

Minister Howlin and Finance Minister Michael Noonan will today hold a meeting with the IMF, European Commission and the European Cebtral Bank.

Yesterday, the IMF slashed the growth prospects in the economy this year to just half of one percent.