Cowen meeting Ministers ahead of €5bn cuts report

TAOISEACH Brian Cowen has begun a round of meetings with each of his Ministers and top officals to examine their performance …

TAOISEACH Brian Cowen has begun a round of meetings with each of his Ministers and top officals to examine their performance matched against commitments made in the programme for government.

TAOISEACH BRIAN Cowen has begun a round of meetings with each of his Ministers and top officials to examine their performance matched against commitments made in the programme for government.

He met Minister for Finance Brian Lenihan and officials yesterday, before meeting Minister for Social and Family Affairs Mary Hanafin and her team.

The Taoiseach will meet Minister for Transport Noel Dempsey and Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan today.

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During the meetings, Mr Cowen and Ministers are to review outstanding commitments and the political practicability of honouring them given the downturn in the State’s finances.

Fianna Fáil and the Greens are to review the programme for government, following a promise made by Mr Cowen during the local and European elections – but this is unlikely to take place until September, a number of Ministers said privately yesterday.

Members of the Cabinet will today be given full copies of an expert group’s report recommending up to €5 billion in public spending cuts, before a full discussion on its findings takes place tomorrow. Ministers now favour publishing the findings of the Special Group on Public Service Numbers and Expenditure, which was led by UCD economist Dr Colm McCarthy, before the August holiday break.

Despite persistent rumours, Ministers insist they have not seen the full report, while senior officials have been briefed only on parts affecting their departments. However, it is understood the group has proposed 20,000 jobs in the public sector must go over the next five years – in education, the Garda, and hospitals – if finances are to be brought back into line.

Better known as “An Bord Snip Nua”, the expert group has a strong Department of Finance presence in Donal McNally, the department’s second secretary. The job cuts should be made by the non-filling of vacancies – except in extreme circumstances – the report is understood to say.

Contract jobs in second- and third-level education, in HSE administration and in the Garda have been targeted.

Up to now, Ministers wary of pre-summer publication have been concerned every recommendation would be seen as a Government decision, when some of its findings will not be accepted.

The group’s support for social welfare cuts will alarm many Fianna Fáil backbenchers, one or two of whom have already hinted to colleagues that it could lead to them quitting the party when the next budget is produced.

The McCarthy group recommends, and many Ministers agree, that social welfare must be cut in line with the fall in inflation.