Ahern and Cowen to increase spending in key areas

The Taoiseach and Mr Brian Cowen are to work together to forge a new image for the Government in the coming months, targeting…

The Taoiseach and Mr Brian Cowen are to work together to forge a new image for the Government in the coming months, targeting spending on voter-sensitive areas and extending the three-year deadline for the moving of 10,000 public servants out of Dublin. Mark Brennock, Chief Political Correspondent, reports.

Government sources say the completion date for decentralisation is now almost certain to be deferred, under cover of an imminent report pointing to the difficulty in having 50 new civil service offices around the State ready on time. It is not known whether a specific new deadline will be set.

With Mr Cowen now seen as certain to take over from Mr Charlie McCreevy as Minister for Finance, the Taoiseach intends to be closely involved in planning the details of fiscal policy, starting with next December's budget.

Several Government sources confirmed yesterday that Mr Ahern has determined that the Government must be seen to change direction if it is to have a chance of recovering support before the next general election. While any fundamental policy change is unlikely, there is expected to be spending on some key public services in an attempt to produce visible results before the next election.

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The Government is expected to target specific high-profile problems in the health services for improvement in the short term. These include accident and emergency services. There is also expected to be a concerted push to open some hospital facilities, which have been built but not opened due to staff shortages.

"No more reports, no more value for money audits, we're talking about deliverability," one Government source said last night. A number of other initiatives are to be highlighted in the autumn to signal that the Government is responding to voters' concerns.

While the PDs also favour improvements in such areas, the strategy of suggesting that the Government is changing direction is likely to cause tensions between the coalition parties. The PDs have been insisting that their distinctive economic outlook has been central to the State's economic success and the Government should not suggest it is turning away from it.

In an article in today's Irish Times the Tánaiste and PD leader, Ms Harney, acknowledges "there is much debate about the direction of Government policy". But she insists "the ethos underlying our party, and which underpins our actions in Government, has and will continue to deliver real change and make a significant difference to all people in this country . . . Notions of left and right are outdated."

Fianna Fáil sources insisted yesterday they do not intend a repeat of the spending increases of over 20 per cent seen in each of the two years before the 2002 general election. Sources acknowledge it was the extra charges and cuts required after the election to make up for that spending spree which have done most damage to the party's electoral support.

However, extra spending is expected on aspects of health, education and social welfare in an effort to show that the Government is listening to voters' concerns and produce visible improvements in certain areas.

While Mr McCreevy operated in a fiercely independent manner - sometimes even surprising the Taoiseach with controversial plans - Mr Cowen and Mr Ahern have always worked in close co-operation in relation to Northern Ireland, Europe, and internal party issues.

But a Fianna Fáil source yesterday rejected suggestions that the new relationship would involve Mr Ahern imposing his will on Mr Cowen as Minister for Finance. "Cowen and Bertie want the same thing. It's not an issue."

The new strategy will give Mr Cowen a delicate task of seeking to retain independence as the Cabinet watchdog on spending, while working with the Taoiseach to ensure spending on politically desirable projects.

A report to the Government from the implementation body on decentralisation within 10 days is expected to say it is unlikely that the 50 premises required to complete the project will be through the planning, tendering and construction phases within the three-year timescale for completion.

The Minister of State, Mr Willie O'Dea, said yesterday he was in favour of a longer timescale.