Estimates the 'most flawed' in 20 years

The estimates published by the Minister for Finance, Mr McCreevy, yesterday, are the "most flawed" since those produced by the 1981 Fianna Fβil government led by Mr Charles Haughey, Fine Gael charged last night.

Questioning the figures, Fine Gael's deputy leader, Mr Jim Mitchell, said key statistics needed to make meaningful comparisons between different years were missing.

"They expose the fact that the Government is deeply divided on these Estimates and has no coherent economic policy," he said.

The Minister had acknowledged that he would face additional spending pressures over the coming weeks, while the Estimates had put nothing aside for benchmarking payments, due next year.

Capital spending would barely rise in line with inflation. "This is particularly disappointing bearing in mind that the National Development Plan, only two-years-old, is already a full year behind schedule."

The 25 per cent cut to Bord Fβilte's budget was "impossible to understand", given the tourism industry's recent run of ill fortune: "This move will come as another blow to an already hard-pressed industry," he said.

The €700 million (£551.29 million) health increase would be consumed by wage rises and by demand-led schemes such as the Drugs Refund Scheme, which would cost €100 million.

"As medical inflation runs at three times normal inflation, it appears that real health expenditure, on the basis of these Estimates, will be less in real terms than this year," he said.

The Government would run a significant deficit next year.

"By ignoring EU and Opposition warnings over the past several years, the Minister for Finance is presiding over a swing from a forecast £3.5 billion surplus to a probable deficit of around £1 billion. This indicates a total lack of competence.

"By squandering money in the years of enormous growth he has left himself without any contingency to meet the current downturn," said Mr Mitchell.

The Labour Party finance spokesperson, Mr Derek McDowell, said the National Development Plan was being "virtually shelved", despite the Taoiseach's recent assurances.

No extra houses would be built, even though the industry now had the capacity to take up contracts, while road investment was "practically frozen" in real terms.

He said that last month the Taoiseach had said the NDP was essential to the country's future:

"The only person who doesn't seem to understand the point is the Minister for Finance. Today's estimates make a mockery of Mr Ahern's words. We are standing still," said Mr McDowell.

"The problem with all this is that the Taoiseach was right. Investment in the NDP is critical if this economy is to grow sustainably in the years ahead.

"It has been cut to facilitate spending on the health services, late but welcome, solely designed to save this Government's electoral bacon.

"It is important to note that we have now had two years of substantial increases in the health budget; we are yet to see the Government's long awaited health strategy," Mr McDowell said.

The Government's spending on childcare will drop next year by €30 million, but this did not represent a lack of support for extra services, the Department of Justice said last night.

The disclosure that the childcare budget will fall from €88.5 million this year, to €58.4 million in 2002, provoked a storm of protest from the Opposition. However, the Department of Justice insisted that its Childcare Unit had received exactly the budget it had sought.

"This is a seven-year programme, costing €436 million. A quarter of this has already been committed. The programme was front-loaded because of pent-up demand," said the Department's spokesman.

The Equal Opportunities Childcare Programme, agreed by the Cabinet last year, would create 11,300 new places and continue support for 14,000.

"The Childcare Unit got everything that it asked for. They are getting 12 extra staff," said the spokesman.