Expenditure cuts are on the cards as boom turns to slash and burn. Denis Coghlan looks at the problems facing the new Government, while other Irish Times specialists examine specific areas
When members of the new Cabinet gather for the first time at Farmleigh House on Tuesday, Charlie McCreevy will give it to them straight: they can raise taxes or cut spending. And they must do it now. Doing nothing would exacerbate the growing gap between projected income and expenditure. And if that happened, the Minister's own political future would be on the line.
Mr McCreevy will make it easy for them. He will tell ministers they can't raise taxes, not simply because they promised not to, in last month's general election, but because it would drive the punters mad. So, as one Government adviser put it, it will be a case of "slash and burn".
Bertie Ahern has promised a Cabinet reshuffle in two years. If Mr McCreevy doesn't take tough remedial action this summer, he could find himself lumbered with two unpopular budgets that would take the shine off his ministry. That's not the kind of preparation that would appeal to an ambitious man. Especially as his saving of Michael Smith has made him enemies within Fianna Fáil.
Micheál Martin is probably dreading the meeting. The Minister for Health knows that spending by health boards is already well over target and that the necessary cutbacks are likely to generate howls of protest. And this is all before the benchmarking process reports at the end of June on nurses' and public service pay.
The promise to end hospital waiting-lists within two years has disappeared in the drive for fiscal prudence. The development of other services will be put on hold. And Mr McCreevy has already arranged for the appointment of an official committee to examine spending and value for money.
A two-hander between Mary Harney and Michael McDowell will be necessary to tackle the insurance sector, where high premiums are threatening the survival of business and antagonising motorists. Ms Harney is committed to implementing the recent motor insurance report, and the deregulation of the legal profession is a vital element.