Cabinet fails to discuss cuts fall-out

Today's Cabinet meeting has ended. It was widely expected the Government would discuss the fall-out of Minister for Finance Charlie McCreevy's publication of the Book of Estimates during the week.

While the estimates were not discussed, it is understood the recent floods, the National Spatial Strategy and the national pay agreement were on the agenda.

The Cabinet discussed the prospects for putting together a new national pay agreement.

Also on the agenda was the Government's National Spatial Strategy, which aims to identify centres of growthacross the country for the rest of the century.

Opposition politicians have attacked the Government over Minister McCreevy's cuts announced on Thursday.

The new leader of the Labour Party, told his party's youth wing that the cuts were "breathtakingly cynical."

Fine Gael leader Enda Kenny told young Fine Gael that the Government was "selling out an entire generation of young people." He said the cuts represented a "Ministerial two fingers to the young people of this country."

The Minister announced total spending €36.7 billion for 2003, an increase of only 2% on this year's figure, and just less than half the rate of inflation.

Many sectors have been critical of the Estimates. SIPTU, the country's biggest trade union, yesterday described them as "savage" and university heads have warned of job cuts across the sector unless the Estimates are reversed.

Dublin's metro system and a number of road schemes which had been ready to go to construction also suffered in the cuts with the proposed Metro link between the city and the airport in serious question.

All Departments have been hit and more cuts are expected in the upcoming budget.

Cutbacks in tax allowances are now expected and the Minister has hinted for the first time that the SSIA saving scheme may face rules changes to limit the State's exposure.

Some Fianna Fáil backbench TDs are understood to be angry at the abolition of the first-time buyer's grant with Cork's Noel O'Flynn TD calling for the decision to be reversed.