'Budget adjustment has to be €3.5bn,' says Hayes

The Junior Finance Minister Brian Hayes has rubbished reports that the Government may need to make even greater cuts in December's Budget.

It had been claimed that because the country's growth forecast for next year is likely to be lower than anticipated, that the Government may need to opt for more savings than the targetted adjustment of €3.5bn.

However, Minister Hayes has said that is not the case.

Mr Hayes said: "In order to get to the deficit at the end of next year, the adjustment has to be €3.5bn and even though we will be seeking out where we see growth in the next quarter and the next year, the growth rates in Ireland are hugely volatile since we are so dependent on events in the international economy.

"So it is impossible to read too much into that at this stage."

On the new National Children's Hospital, the Junior Finance Minister said a decision on where it will be located will be made known this week.

Mr Hayes' comments come after the Irish Times yesterday suggested that the new hospital would be built on land behind the Coombe and both hospitals would be linked with St James's.

The site in question includes the old John Player factory and other surrounding land, around 20 acres in total, all of which is owned by Dublin City Council.

However Minister Hayes is staying tight lipped on where the Government is hoping to build the new hospital.