| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Sep 23, 2010 - 5:07:55 PM


Irish Public Spending: Bord Snip report recommends spending cuts of €5.2 billion; Most radical overhaul of local government since 1898 but other Victorian era relics to survive
By Michael Hennigan, Founder and Editor of Finfacts
Jul 16, 2009 - 5:44:04 AM

Email this article
 Printer friendly page

Taoiseach Brain Cowen with trowel in hand, ready to help. As with the long-dominant LDP party in Japan, the mutual dependence of the dominant Fianna Fáíl party and the Irish construction industry, has also brought economic ruination to Ireland.

Irish Public Spending: The Bord Snip report, which will be published today, recommends a raft of spending cuts amounting to €5.2 billion and involving 17,000 State job losses; a €300 million reduction in the Health Service Executive’s paybill and the most radical overhaul of local government since the Local Government (Ireland) Act 1898.However, the decision of Taoiseach Brian Cowen to reverse his position on publishing the report does not mark a departure from other Victorian era relics in Irish public governance; endemic conservatism and opacity. With the Oireachtas on its 2-month summer holiday break, he hopes that the prospect of the usual vested interests building up steam on the basis of leaks, will be thwarted while the Opposition will have to outline their positions on the cut proposals.

An Bord Snip Nua, officially titled Special Group on Public Service Numbers and Expenditure Programmes, under the chairmanship of UCD economist Colm McCarthy, was mandated to propose cuts worth €3.5 billion annually but was not allowed examine the State’s capital spending and public pay bill.

It's not that these two areas do not merit examination but the politicians and senior civil servants do not of course wish to have to change such perks as the earnings indexed-for-life pension scheme.

With the ESRI forecasting that GNP per capita will fall to the 2001 levels, who among the political leadership and the senior public service, knew that the average benchmarking payment of 9% was based on a fraudulent premise? Were they all eejits or self-interested participants? In addition to the Bord Snip report, the forthcoming Commission on Taxation report, is also expected to make a significant input to Budget 2010 in December.

However, with political leaders in denial as to primary responsibility for the crash of the Celtic Tiger - - the second monumental period of mismanagement in a generation - - the key issue for all politicians and senior civil servants is that the implementation of cuts and changes to the tax system in the next Budget, will only be a short-term band-aid response.

Without transparency on public spending and a change in the buck-stops-nowhere governance system with senior management not held accountable but self-assessing themselves for public bonuses, the recipe for the next disaster will soon be in the making.

While the people who sat idly by or participated in the spoils, will continue to live a very good life, they have destroyed the lives of tens of thousands of people.

Nobody will be charged in a court for economic crimes, but  the collateral damage they have been responsible, will affect the people who will survive, for many years to come.

It's also rare for a people to collectively look in the mirror and take lessons from the plundering of the best hope we as a country have had, to put the Irish economy on a sustainable basis.

The recent worshippers of the gods of property in the political leadership have switched to blather on the so-called "smart economy" with the help of cheerleading from the politicised State agencies - - as if the ignorant use of American marketing jargon, is going to produce the "high value" jobs, like manna from heaven.

When the Irish were the second-biggest investors in commercial property across Europe, who cared?

We can blame it on colonisation as Africans tend to do, but we need to face an inconvenient truth - - there is no constituency for parsimony in using public funds.

To the victors go the spoils and vested interests are all socialists when it comes to plundering the public purse.

Update: Lenihan publishes Bord Snip report; Proposes €5.3 billion in spending cuts and public sector staff reductions of 17,300; Says public pension cost at 30% of salary

SEE Finfacts articles:

The Waste Land - - Bord Snip, Irish Public Spending Transparency and the motto "Never do anything for the first time"

The 2001 economic consensus that paved the road to economic ruin

Celtic Tiger Aftermath: Guilty Irish politicians remain in denial and clover while ignoring their victims

Report says Irish Financial Regulator’s failure to control property bubble contributed to economic crash and consumer wealth losses

Based on official leaks, the Bord Snip report recommends the merger of county and city councils in Cork, Limerick, Waterford and Galway; says single councils should serve two counties in a number of cases, including Sligo-Leitrim and Carlow-Kilkenny, and calls for town councils to be abolished; It targets allowances for State employees worth hundreds of millions of euros; a cut of €1.5 billion in the social welfare budget; the abolition of the Department of Community, Rural and Gaeltacht Affairs and an examination of the role of the Department of Arts, Sport and Tourism

Minister for Finance Brian Lenihan said on Wednesday that the public must accept that there are hard choices ahead, adding that €4 billion must be cut from spending or raised in extra tax next year. “There is no doubt that implementing the scale of adjustments required means that we must all take some very difficult decisions,” he said.

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

Irish
Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%