Bigger utility bills - Mini-budget introduced by backdoor

HOT on the heels of revelations that the Government is introducing spending cuts in the public service by stealth, the country's hard-pressed consumers are facing bigger utility bills, including higher charges for electricity.

In the aftermath of an election campaign in which the outgoing administration told voters the days of milk and honey would never end, the bitter irony is that people are already being asked to tighten their belts with one hand while digging deep into their pockets with the other.

In what can only be described as the insidious introduction of a mini-budget by the backdoor, swinging cuts are now biting in health, education and overseas aid. On top of an increase of 18% in VHI premia already approved for the autumn, ESB bills for both domestic and business customers are also expected to jump by 15% in September.

Against such a bleak backdrop, we can anticipate more bad news from this week’s Cabinet meeting as Finance Minister Charlie McCreevy seeks further cuts across the board with the aim of bringing down to 14% by year-end the increase in public spending, which is now reached the 21% mark. Such a hairshirt programme would be laudable were it not so cynical.

Meanwhile, an absorbing confrontation could be looming between the Departments of Finance and Justice where newly-appointed Minister Michael

McDowell is reportedly preparing to resist cutbacks in Garda recruitment as part of a wider public service employment ban.

Arguably, however, there may be more shadow than substance in this apparent show of opposition by Mr McDowell. While the PD heavyweight has pledged to honour the outgoing Government’s decision to initially bring the strength of the force to 12,000 and ultimately to attain a target of 14,000, the Opposition has been quick to remind him that pledge bore a shelf life of two years, not five.

At the same time, in a seeming nod towards putting the brakes on spending, the minister has rejected calls from the gardaí for more weapons and equipment to protect them against assault.

The minister says he is opposed to creating a Robocop image within the police force, and rightly so. While it would certainly be counter-productive to dress up the force like a riot squad, there are grounds for considering more discreet forms of protective clothing and equipment at a time when casual violence is escalating on the streets of our cities and town.

If he takes on the challenge of defending the gardaí from the axe now falling on public spending, it will be the first of many tests facing Mr McDowell as he sets out to reform the country’s outdated justice regime, making it more transparent and more relevant to the needs of Irish society.