Social welfare cuts of €1.5bn on Bord Snip Nua's hitlist

* Public sector staff numbers to be cut by 10%* Garda stations to close and numbers limited

Shane Coleman and Martin Frawley

Cutbacks: An Bord Snip Nua chairman Colm McCarthy

SOCIAL welfare cutbacks totalling €1.5bn will be contained in the final report of An Bord Snip Nua, due to be presented to finance minister Brian Lenihan within days.

The Sunday Tribune has learned that it proposes overall cutbacks of €5bn – the biggest potential overhaul of government spending in the history of the state.

There is intense speculation the report will also contain recommendations to:

* Close up to half of all rural garda stations and restrict garda numbers by as many as 1,000.

* Further rationalise the number of army barracks, with cuts of up to 1,000 in defence force personnel.

* Dramatically reduce public sector numbers by about 10% or 30,000, saving over €1.5bn a year.

* Cut little-used public transport routes.

* Reduce the overall budget of the House of the Oireachtas, restructure government departments and slash the numbers of diplomatic staff serving abroad.

* Row-back on decentralisation building projects.

The cabinet is certain to reject some proposals but, with the government forced to reduce spending by €4bn this year, room for manoeuvre is limited.

Most attention is likely to focus on the €21bn social welfare budget, which An Bord Snip Nua will propose cutting by over 7%. The body is unlikely to recommend specific rate reductions, but is certain to look for restrictions to certain benefits. Chief among these will be the rent supplement allowance and universally applied child benefit. Sources say the rent supplement budget has failed to reflect the sharp fall in rental prices, while ministers are moving towards introducing means testing of child benefit.

The other major expenditure item for the government, the public sector pay bill, will also feature large in the report. Numbers in the public sector have risen by a staggering 77,000 in just 10 years – that rate of increase will be halted and partially reduced by natural wastage and the recently announced early retirement and career break schemes.

The Department of Agriculture has been the focus of particular attention by An Bord Snip Nua chairman Colm McCarthy. Including Teagasc, there are 6,000 staff dealing with just over 100,000 full-time farmers.

The Department of Health, where over 700 staff remain despite the HSE now running the health service, is also on the chopping board. Sources say numbers could be cut by up to a third. Other bodies rumoured to be on the Bord Snip Nua hitlist include: Fás, Fáilte Ireland and the Irish Film Board.

There is also consideration is being given to a re-jigging of government departments. The Department of Community, Rural and Gaeltacht Affairs could be broken up, with 'Gaeltacht' going to Education and 'Rural' moving to Agriculture.

The report from An Bord Snip Nua – along with the upcoming Commission on Taxation report – will form the basis of the upcoming estimates process, likely to prove the most challenging in over two decades.

June 28, 2009

Comments

#1 Piaras Mac Einri commented, on June 28, 2009 at 7:57 p.m.:

I welcome these cuts. We need to slash public spending and bring back incentives for unemployed people to go out & get a job.

#2 THADY QUILL commented, on June 28, 2009 at 8:24 p.m.:

BEFORE it comes out, and later very carefully reading what it's terms of reference are, if , as indicated on the radio Sunday, it recommends cutting back and deferring etc. on capital projects [a roads one estimated at E6bn at the start, cost E13Bn for that one, THEN this could have been done months ago.It should not take a so called commissined report to say this, it was so obvious.
The govt. is thus hiding behind a report so they don' t take the blame and so avoid damage.In most societies this is called a device of 'perpetually holding on to power'.

#3 tony commented, on June 28, 2009 at 8:30 p.m.:

By the looks of the article by Shane Coleman and Martin Frawley and, as if that were not enough, another by Shane Coleman on his own [28.06.09], Colm McCarthy & Co trading under the euphemistic title of An Bord Snip Nua [really An Bord Slash and Burn] are going to close down everything west of Chapelizod. Railway lines, Garda stations and army barracks are to go. In addition, according to them, we cannot afford to have a ministry of Rural Affairs.

The past attitude of our colonial masters to the bogmen outside the Pale was nothing in comparison with what McCarthy's Bord have in store for us if Coleman and Frawley are to be believed. And why should they not be believed when 'well-placed government sources' provided the information?

Metros are alright for the metropolitans but leave nothing but bogs for the bogmen seems to be the motto.

#4 c carroll commented, on June 28, 2009 at 8:52 p.m.:

i suppose we will see paul gogarty and the greens soul search and pontificate about these cuts but will in the end like sheep will follow, to hell with the people. any cuts or taxes should be flagged prior to the lisbon referendum.

#5 brendan buffini commented, on June 30, 2009 at 8:29 a.m.:

For BIG,BIG,BIG, savings to the Country a change in the constitution before the next General Electon has to come.
Cut the Dail to 100 sitting T D's. It's time to get real Ireland you are just too small to be ruled by so many.

#6 Mossy Heneberry commented, on June 30, 2009 at 4:34 p.m.:

Why doesn't the report mention anything about the size of our government? Lets cut back on the number of TDs, councillors and their support staff.

#7 Jonathan commented, on July 1, 2009 at 9:50 a.m.:

Brendan, A general election and change of government will destroy this country once and for all. We are currently borrowing €40billion at a rate of 6% and lending at a much lower rate. If there is a government change, we risk having that 6% rate increased to 12%. The ECB are probably going to lower rates to 0% at some stage soon too.
So if we borrow @ 12% and lend at 0%, what does that tell you?

#8 P Moran commented, on July 1, 2009 at 12:02 p.m.:

I cannot believe that they would consider cutting social welfare payments again. I am unfortunate enough to be a casualty of the downturn in our economy, and have been on SW since last year. I am currently in receipt of rent allowance and have had to approach my landlord on two occasions to get my rent dropped by a staggering 22%. They cant come back for more, can they ? Well they will have 3 months to ponder on it during their extended recess, thank god the country is not going through the worst recessionary period in history !

#9 noel commented, on July 2, 2009 at 1:04 p.m.:

€204 per week a person claiming disability allowance not to live on but to exist on and someone on €3,000 per anum, ie (government minister) is proposing to cut disability allowance.
does this government like living on the edge. are they expirementing on how far they can push it citizens before they spark a revolution.
A bit of advice to all tds and ministers stop digging get out of the hole and go after those that have their breakfast 7 mornings per week and leave those alone that with a bit of luck might stretch it to having four breakfasts a week.

#10 disillusioned commented, on July 3, 2009 at 11:56 a.m.:

California is going broke just like us. Arnie has told all Public Offices to close for 3 days each working month.

#11 thomas coffey commented, on July 4, 2009 at 11:33 p.m.:

I am one of those unfortunate enough to have to give up my job because of a major illness my wife has got last year. I recieve 220 euros a week from carers allowance to care for my wife and two children ,she recieves 220 on disability and we get 100 euros for rent supplement towards our morgtage of 900 euros a month.Last month our trs was stopped ,now they are cutting back on social welfare yet sean fitzpatrick and company ride off into the sunset with not a care in the world' mr lenihan might say that fitzpatrick is no friend of his because of that paticular scandal but I can assure you the gorvernment will be no friend of the vast amount of the public if it continues to hit the most vunerable in society .They are all very educated people and were elected by the people to do a job isnt it about time that they earned their money.

#12 Geraldine Bray commented, on July 5, 2009 at 8:21 a.m.:

There are too many TDs, too many Civil Service employees and too much waste from the top down. Surviving this recession is vital to the economic future of Ireland. In the meantime good Government requires that we do not lose sight of our other aims and responsibilities while we are climbing back out of the hole our Government and our banks have dug for us. Crime is ongoing and drug crime is particularly pernicious. The Gardai need every tool this country has to win the war on crime and follow through with action against crime on the roads. The last thing we need right now is a reduction in manpower because when this recession finally becomes a bad memory we will still have the enormous task of ridding our country of its most destructive and deadly pair of enemies, namely drug gangs and criminally dangerous drivers.
The fight is ongoing even when the country has no money to spend.

There may be a dangerous beast in the hallway but there is a particularly nasty one in the kitchen. Both need to be dealt with at the same time.

#13 Brenda Mac nally commented, on July 5, 2009 at 11:08 a.m.:

What about the councillors. We have far too many. Cork city, for example, has more than some cities of 2 million people. The city manager makes the decision anyway. Go to one of their meetings, it is a lot of hot air and could be done over the phone by a paid employe in City Hall. An Board snip if you can't get rid of 90% of these people, cut their expenses to zero, or if they have to travel make them use public transport!!! It is an antiquated system that worked in the 1940's but not any more. Does any one know how much it cost the country to have councillors? I am guessing several millions!!!!

#14 Michael Joseph Stewart commented, on July 5, 2009 at 1:29 p.m.:

I totally agree with Brendan Buffini's proposal to cut the number of T.D.'s,but what party of the present crowd has that kind of courage???

#15 Fred Simpson commented, on July 5, 2009 at 10:16 p.m.:

As long as the bankers are not asked to pay for their reckless stupidity, then we are alright, isn't that right Ted ??

Kick Anglo and Permo out of the state gaurantee scheme over the multi-billion loan that 'matured' in 48 hours....

We are taking about capitalism. It is supposed to be dog eat dog. Instead we are putting these reckless careerists and schemers ahead of desolate communities and social welfare recipients. The priorities for this government are all wrong. This is Ahern socialism-looking after corrupt institutions and corrupt capitalist enterprises.

"I did not appoint these people to state board because they gave me money, I did it because they were me friends". Bertie Ahern, Kildare Street, 2007 !!!

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