Government cutbacks - Right move, but why not sooner?

Following publication of last week’s exchequer figures, the Government was facing a shortfall of about €3 billion on expected revenue for 2008. Hence corrective action became an imperative yesterday.

All departments, state agencies and local authorities, other than health and education, are being required to reduce their payrolls by 3% by the end of 2009. In addition, expenditure of all departments and state agencies on consultancy services, PR and advertising is to be cut “by at least 50% in 2009 compared with 2008”.

The Government was less specific on the other savings to be implemented. State agencies, boards and other public bodies are to review their activities, staffing and costs by examining the scope for rationalisation, shared services and other measures. This will involve the amalgamation of agencies where possible.