Finance Dept details cost-cutting plans
watch listen Wednesday, 9 July 2008 22:10
The Department of Finance has published a summary breakdown detailing the savings and efficiencies included in the €440m of spending cutbacks announced yesterday.
It shows that the largest savings are to be made in the Department of Health and Children, where €144m is to be shaved off the Department's budget.
This includes €85m saved as a result of the delayed introduction of the Fair Deal for long-term care of the elderly as well as another €50m of policy-related savings and €9m from efficiencies.
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The second highest savings of €83m are to come from the Department of Finance. €5m of this is related to efficiencies within the department including savings on consultancies, payroll and administrative budgets.
The vast bulk of the Finance savings come from the Office of Public Works, most of which relate to the postponement of the Government's decentralisation programme.
The third highest savings are to be made at the Department of Environment where €48m is to be cut from the budget for 2008.
The bulk of this amount is accounted for by deferring planned investment by the Gateway Innovation Fund associated with the National Spatial Strategy. The remaining amount will be accounted for by departmental efficiencies including administrative and payroll savings.
The Department of Social and Family affairs is to come up with €30m in savings. The majority of this amount - €25m - is to achieved through better control measures on various social welfare schemes. The remaining €5m will be saved through administration and payroll efficiencies.
The construction slowdown is expected to result in fewer apprenticeships in FÁS and this, as well as other measures, will save the Department of Enterprise, Trade and Employment about €10m in the second half of this year.
On top of this another €15m is to be saved from administrative, payroll and other efficiencies to be made by the Department.
The next largest savings are to be made by the Department of Transport where €22m is to be saved, mainly as a result of delays and deferrals of a range of capital or infrastructure development projects.
The breakdown also reveals that, taking all Government Departments together, the total amount to be saved on payroll costs during the second half of this year is just €10m.
In addition a total of €21m is to be saved by all departments on consultancies, advertising, and public relations activities. Another €39m in total has been earmarked for savings to be made by agencies and other efficiencies.
Cowen warns of further measures
This morning the Taoiseach told the Dáil that further economic decisions may be needed to deal with the current downturn.
Brian Cowen was defending his Government's package of savings at Leaders' Questions this morning ahead of a two-day debate on the measures which got under way this afternoon.
Fine Gael leader Enda Kenny said the decision to claw back money earmarked for the Government's nursing home scheme was heartless and sacrilegious.
Mr Cowen though said these funds were ring fenced and could not be allocated this year because the legislation was not ready.
Labour leader Eamon Gilmore wanted to know if there was going to be a drip feed of what he called sneaky cuts and stealth taxes through the summer.
The Taoiseach conceded there might be further decisions required in response to what he said was a serious situation.
Pressed on the details of yesterday's package, he said some capital projects would be deferred and that ministers would give a fuller account in the debate.
Details of exactly how each department will be affected by the cutbacks will be announced by individual ministers during the course of nine hours of debate.
The Dáil was supposed to have started its summer break last Thursday - but a further sitting week was agreed to debate the economy.
Yesterday the Government brought forward its plans for dealing with falling tax revenues, with plans to save €440m in the current year, and €1bn next year.
Opposition parties complained of a lack of detail, and suggested the Government's figures did not add up.
For the current year, the Government is hoping to save up to €20m in payroll savings; €50m in efficiencies that were flagged in the Budget; and another €21m on advertising, public relations and consultancy fees.
The balance will come from departmental spending, although the Government pledges frontline services will not be affecte
watch listen Wednesday, 9 July 2008 22:10
The Department of Finance has published a summary breakdown detailing the savings and efficiencies included in the €440m of spending cutbacks announced yesterday.
It shows that the largest savings are to be made in the Department of Health and Children, where €144m is to be shaved off the Department's budget.
This includes €85m saved as a result of the delayed introduction of the Fair Deal for long-term care of the elderly as well as another €50m of policy-related savings and €9m from efficiencies.
Advertisement
The second highest savings of €83m are to come from the Department of Finance. €5m of this is related to efficiencies within the department including savings on consultancies, payroll and administrative budgets.
The vast bulk of the Finance savings come from the Office of Public Works, most of which relate to the postponement of the Government's decentralisation programme.
The third highest savings are to be made at the Department of Environment where €48m is to be cut from the budget for 2008.
The bulk of this amount is accounted for by deferring planned investment by the Gateway Innovation Fund associated with the National Spatial Strategy. The remaining amount will be accounted for by departmental efficiencies including administrative and payroll savings.
The Department of Social and Family affairs is to come up with €30m in savings. The majority of this amount - €25m - is to achieved through better control measures on various social welfare schemes. The remaining €5m will be saved through administration and payroll efficiencies.
The construction slowdown is expected to result in fewer apprenticeships in FÁS and this, as well as other measures, will save the Department of Enterprise, Trade and Employment about €10m in the second half of this year.
On top of this another €15m is to be saved from administrative, payroll and other efficiencies to be made by the Department.
The next largest savings are to be made by the Department of Transport where €22m is to be saved, mainly as a result of delays and deferrals of a range of capital or infrastructure development projects.
The breakdown also reveals that, taking all Government Departments together, the total amount to be saved on payroll costs during the second half of this year is just €10m.
In addition a total of €21m is to be saved by all departments on consultancies, advertising, and public relations activities. Another €39m in total has been earmarked for savings to be made by agencies and other efficiencies.
Cowen warns of further measures
This morning the Taoiseach told the Dáil that further economic decisions may be needed to deal with the current downturn.
Brian Cowen was defending his Government's package of savings at Leaders' Questions this morning ahead of a two-day debate on the measures which got under way this afternoon.
Fine Gael leader Enda Kenny said the decision to claw back money earmarked for the Government's nursing home scheme was heartless and sacrilegious.
Mr Cowen though said these funds were ring fenced and could not be allocated this year because the legislation was not ready.
Labour leader Eamon Gilmore wanted to know if there was going to be a drip feed of what he called sneaky cuts and stealth taxes through the summer.
The Taoiseach conceded there might be further decisions required in response to what he said was a serious situation.
Pressed on the details of yesterday's package, he said some capital projects would be deferred and that ministers would give a fuller account in the debate.
Details of exactly how each department will be affected by the cutbacks will be announced by individual ministers during the course of nine hours of debate.
The Dáil was supposed to have started its summer break last Thursday - but a further sitting week was agreed to debate the economy.
Yesterday the Government brought forward its plans for dealing with falling tax revenues, with plans to save €440m in the current year, and €1bn next year.
Opposition parties complained of a lack of detail, and suggested the Government's figures did not add up.
For the current year, the Government is hoping to save up to €20m in payroll savings; €50m in efficiencies that were flagged in the Budget; and another €21m on advertising, public relations and consultancy fees.
The balance will come from departmental spending, although the Government pledges frontline services will not be affecte
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