THE GOVERNMENT has dismissed claims by Opposition parties there are tensions or conflicts between both Coalition parties over the contents of next month’s budget.
As Ministers met yesterday for the second of three meetings to decide on the €3.8 billion adjustment required, Fianna Fáil, Sinn Féin and the United Left Alliance accused Ministers of widespread early leaks to soften the blow of the worst austerity measures and of kite-flying to see how palatable other measures were.
Since last weekend it has emerged the likely cuts in the budget include a €10 monthly cut in children’s benefit for each child, new prescription charges, closures of up to 42 community homes and a €50 annual charge to holders of medical cards.
In a number of attacks on the Government yesterday, primarily during a heated Leaders’ Questions, Fianna Fáil accused the Government of cynicism. Party leader Micheál Martin said the Cabinet was involved in a “deeply cynical exercise” of saying it has made no decisions while selectively leaking details of what might appear.
Socialist TD Joe Higgins accused the Taoiseach and his Ministers of “cynical kite-flying exercises” about possible cuts and manipulating the media and the public with “horror stories”.
However, a Government spokeswoman last night dismissed suggestions there was conflict among the Government parties or among Ministers about the budget. Discussions were ongoing, and many details of the budget had yet to be finalised, she said.
Later Fianna Fáil’s health spokesman Billy Kelleher claimed Ministers were in “open conflict” over the budget process following comments by Minister for Children Frances Fitzgerald that she did not wish to see a medical card charge in the budget.
She said: “The medical card issue is something that I would not like to see on the table.”
Responding, Mr Kelleher said; “We have seen far too much kite-flying from this Government in advance of the budget to the extent that parents, mortgage holders, those on medical cards and hospital patients now don’t know what to expect.”
The Cabinet met for two hours yesterday morning to further advance a budget that Minister for Finance Michael Noonan has described as being made more difficult because all the “low-hanging fruit” had been picked in last year’s budget, which involved a €6 billion contraction.
Ministers will begin meeting this morning for what is expected to be a protracted meeting, focusing on two primary issues – social welfare and a jobs initiative. The Department of Social Protection will bear the brunt of departmental cuts, with an expected €700 million of adjustments.
The Cabinet is expected to conclude its deliberations on cuts today and will focus on how it will raise €1.6 billion in tax and duties at next week’s meetings.
Mr Noonan, who addressed the Ibec conference yesterday, told delegates the Government’s targeted €3.8 billion of savings next year “may vary slightly” after the receipt of extra exchequer data.