Finance defends gaps in spending figures

The Government's spending figures for 2002 lacked key information because of the scale of the battle for resources between Government departments, the Department of Finance has said.

Senior Finance officials yesterday met Fine Gael TD Mr Jim Mitchell, following his sharp complaint that the Government's 2002 spending targets had been rendered meaningless by the gaps.

The Minister for Finance, Mr McCreevy, did not include a 2001 spending out-turn figure when he published the Estimates in late November - for the first time during his five years in charge.

However, a senior Finance official insisted last night that officials had advised him not to do so because other Government departments were still pushing for last- minute resources in 2001 and for their 2002 entitlements.

"The real reason is that the campaign was pretty stiff, to put it mildly. We had to take a very firm line because of the scale of the demands that were coming," he told The Irish Times.

The health budget for 2002, according to Mr Mitchell, is actually down £78 million on this year's figure - even though the original Estimates showed that it was going to increase by 14 per cent.

"You will see the Minister coming in on Wednesday and giving 'an extra billion' to the Department of Health.

"But it won't be an extra billion. It will barely cover the in-built increases.

"Additional spending on Budget Day will merely restore the health services to their existing levels and the health strategy will sit on the shelves - an expensive sham with no funding," he charged.

Last night, the Department of Finance did not argue that the 2002 figure is £78 million below this year's total, but it strongly rejected any contention that an attempt had been made to hide information.

Supplementary 2002 spending was not agreed until after the Estimates were published, said the official, who insisted that Mr McCreevy had repeatedly said that there would be extra spending in 2002.

In all, £328 million was shared between departments. Health received the biggest share, at £176 million, while Social Welfare received £44 million, Environment £55 million, Justice £42 million, while the Garda S∅ochβna got an additional £40 million.

Once these were agreed, the information was relayed in Dβil answers to Mr Mitchell. "Yes, we did not publish the out-turn figures, but we said that all along. The spending comparisons should be made after the Budget," a Finance source said.

Meanwhile, the Government will come under added pressure from the Opposition in the Dβil today over its decision not to extend medical card eligibility.

The Labour Party has tabled a Private Member's Motion calling for a reversal of the decision not to offer 200,000 more people the medical card.

In a letter to the Independent TDs, including those who support the Government, Ms Liz McManus TD said many of their constituents had looked forward to the move.

The current eligibility limits were "inadequate": "In effect the only people now qualifying are those on social welfare. The working poor are largely shut out." The motion will be voted on tonight.