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Plenty of money woes for Donohoe

Inside Politics: No minister for finance can have enough in his treasury to satisfy all the demands of colleagues

For most of us, having no money makes life a misery. But having plenty of money is no picnic, either, if you’re Paschal Donohoe.

No minister for finance can ever have enough in his treasury to satisfy all the demands of his colleagues. Choosing between their competing priorities – and the competing priorities of public services, investment, tax cuts and so on – is a tricky political business.

Donohoe, heir to Twin Hammers of Austerity Michael Noonan and Brendan Howlin, has a busy and scratchy few months ahead of him.

Yesterday he launched the Government’s draft stability programme update, a summary of the economic situation to be sent to the European Commission at the end of the month and which incorporates updated economic forecasts.

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For detailed economic analysis, see Cliff Taylor's piece, but it's clear that Polite Paschal, the most courteous man in Government, realises he is going to have to manage expectations significantly.

Economic growth is surging ahead; political expectations will grow in parallel and soon outstrip the significant-but-limited resources that Donohoe will have at his disposal. And there is an election in the mid-distance.

As our lead story relates this morning, Donohoe is already seeking to head off demands for tax cuts and spending increases.

The Minister knows he has his work cut out. Not alone are vocal and powerful lobbies mobilising to claim their share of the enlarged pie, but Ministers are gearing up to fulfil what their civil servants believe to be their most important function – to secure more resources for their departments.

If he does his job properly, Donohoe will make himself unpopular with many of his colleagues over the coming months. The crucial element in whether he is successful or not is whether he has the backing of his boss. Our editorial view is clear: time for caution.

Budget-making remains largely a secret world that takes place behind closed doors, known only to its participants. Over the coming months, we’ll attempt to see through the keyhole for you.

Frenemies: FF and FG

Running in the background all the while is the worsening relations between Fine Gael and Fianna Fáil.

As Fiach Kelly reports today Minister for Housing Eoghan Murphy responded in spirited fashion yesterday to an attack by Fianna Fail's new housing spokesman, Darragh O'Brien, who had wondered aloud if a pair of posh boys like Murphy and the Taoiseach were sufficiently in touch with the great unwashed to solve the housing crisis.

O’Brien himself comes from the mean streets of Malahide, not exactly a byword for urban deprivation – although some of the yachts in the marina look quite shabby after the winter, apparently.

But the ad homines attack served its purpose: it got under Murphy’s skin, and put down another marker about FF’s growing in-your-face attitude.

Micheál Martin has decided the party has to do the third budget with its Government “partners”. In a curious way, this has given his front benchers a licence to attack the Blueshirts at every opportunity. Some of them, it has to be said, seem to be enjoying it.

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times