"Mad cap" plans like benchmarking must be scrapped to prevent the Exchequer from tumbling further into the red, according to one of the country's leading stockbroking houses.
A report released by Goodbody Stockbrokers today describes Government initiatives like benchmarking and the SSIA as "mad cap but expensive schemes" that have put serious strain on the State finances.
"The long term needs of the economy would be better served by abandoning benchmarking," the report said. "The deterioration in the public finances mean that [it is] now both unjust and unaffordable."
The report expressed concern that the only solution to the spiralling costs of such schemes would be to raise taxes substantially. However, the Tánaiste, Ms Harney, insisted this morning that was not an option.
It also recommends that the current system of Exchequer spending be radically overhauled.
Goodbody also used the report to lowered its GDP forecast for 2003 to 2.9 per cent, but held its GNP outlook at a steady 3.5 per cent.
It also predicted that inflation would average 3.5 per cent for the year, which would be the lowest annual rate since 1999.
Unemployment will probably not exceed 5 per cent by the end of 2003, despite a raft of recent job losses across all sectors.