The economy is in a worse state than suggested by the memos leaked at the weekend, the Minster for Finance, Mr McCreevy said today.
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As Opposition parties today called upon the Government to clarify spending plans in light of the leaked Department of Finance memos showing €900 million will need to be cut from spending plans for 2003, Mr McCreevy said the two memos were predicated on figures available in June. But he today warned more recent indicators suggest the situation is worse.
Speaking at a book launch in Dublin, he said tax revenue for the remainder of the year was likely to be €200 million below that predicted at the time the memo was circulated to cabinet. He would not be drawn on what the consequences would be but said measures would need to be taken.
Mr McCreevy denied the public had been misled during the general election campaign saying he had consistently argued that commitments in the Fianna Fáil manifesto were based on projections of economic growth and tax take that have since proved over optimistic.
"During the election campaign, when an extraordinary amount of time was given to the economy, I left nobody in any doubt of the need for prudent budgetary policies," the Minister said. "The Irish people knew exactly what they voted for," he added.
He also emphatically rejected suggestions he did not have full cabinet support for the continuance of the SSIA special savings scheme which is likely to cost more than €500 million this year.
"As I said at the time, it was introduced for a good reason ... it was a good idea then and its a good idea now," he said.
Mr McCreevy's comments follow calls by Fine Gael and Labour for more clarity on the state of the public finances.
Fine Gael leader Mr Enda Kenny has instructed his entire front bench to submit questions - under the terms of the Freedom of Information (FOI) Act - to each Government department seeking "immediate and full disclosure of critical information pertaining to all budgetary cuts, 'adjustments' or 're-alignments' announced or mooted".
He personally called on the Taoiseach, Mr Ahern, to waive the normal 28 days it takes to have an FOI request processed, saying minsters should instruct their departments to furnish all relevant documentation within 10 days.
Speaking at the launch of the Fine Gael campaign for a 'Yes' Vote on the Nice Referendum, Mr Kenny said: "I call on him now, for the first time in his tenure as Taoiseach, to show leadership. For once, to show leadership of the true, political kind. I call on him to stand up and give the people the information they need. To give it all now, deliberately, once and for all."
Labour health spokeswoman, Ms Liz McManus said the Minster for Health, Mr Micheal Martin, explain how the cutback of €50 million in health called for in the memo would impact on services.
She said a further cutback in current spending for 2003, estimated health board over-runs of €77 million and health inflation of 10 per cent meant the current level of service could not be maintained. She said the National Health Strategy, which was a central plank of the Fianna Fail election campaign, has been "rubbished in effect by the Government's approach".
"We have heard so much from the Minster for Health when he was making promises to those dependent on our health service and those working in it. He now has an obligation to spell pout precisely what impact these cuts are having on patient care," she said.