A summary of the proposals for spending cuts outlined by major Government departments as part of the Comprehensive Spending Review process
FINANCE
The Department of Finance has said it will not be able to reduce its costs, given the important work it has to do.
In fact the department’s comprehensive expenditure review for 2012 sets out how, because its costs are in very large part due to payroll costs, and given the policy goals it has been set by Government, it is of the view that additional payroll resources will be required.
Without additional resources, the department will not be in a position to continue to make a contribution to Ireland’s economic and fiscal recovery, according to the review, it says.
The department review sets out the challenges it faces, which include implementing the budgetary targets and structural reform commitments set out in the EU-IMF programme of support for Ireland, providing advice on EU proposals for fiscal governance reform and dealing with banking sector reform.
While overall and administrative budget paybills had decreased substantially since 2008, costs increased in 2011 as a result of external skills recruitment as a reaction to the recommendations in the Wright Report, which examined the performance of the department during the boom years.
"Key skills issues must now be addressed to ensure that the department can continue to assist the Minister and the Government in the State's economic and fiscal recovery," the review said.– COLM KEENA
HEALTH
The introduction of a new lower-paid grade of home help staff, new restrictions on drug prescribing and a €50 million cut in the pay bill for hospital consultants were among the measures considered by the Department of Health as part of the Government’s comprehensive review of spending.
The department’s submission also suggested that there could be two thresholds for reimbursement of money spent on drugs under the Drug Payment Scheme – one for persons on lower incomes and a second one for those on higher incomes. It said another option would be a lower threshold for persons with a chronic disease.
The department document also said it was proposed to reduce acute hospital budgets by €40 million in 2012 and by a further €35 million in the following year. – MARTIN WALL
TRANSPORT
The Department of Transport raised questions about the appropriateness of free travel in the report it submitted for the Comprehensive Expenditure Review.
Pointing out that the funding received by CIÉ from the Department of Social Protection is insufficient to meet the costs of free travel, it states that “the wider question of the a appropriateness of blanket free travel, for [a] broad range of passengers is an issue”.
The report also recommended legislation on the non-payment of motor tax when a vehicle is “off the road.” The system, it says, is open to abuse, and could save the exchequer €40 million a year.
In relation to Government funding of regional airports, the report proposes that PSO (public service obligation) air services be discontinued when contracts end. The only PSO routes renewed this year are the routes from Dublin to Donegal and Kerry –SUZANNE LYNCH and CIARAN HANCOCK
CHILDREN/YOUTH AFFAIRS
A significant rise in the number of children in care will lead to an overspend of €70 million next year, according to the review of expenditure in the Department of Children and Youth Affairs. The department says it is seeking greater clarity from the HSE on the detail of the projected overspend and the measures to be put in place to address the deficit. The number of children in care grew from 5,322 in 2007 to 6,175 last June and is projected to grow further. Despite the increase in overall costs, the department intends to achieve some savings by reducing the number of private care places, reducing the use of agency social workers and introducing a charge for adoption assessments. For staff, flexible hours are to be introduced to cut overtime.– PAUL CULLEN
FOREIGN AFFAIRS
The Department of Foreign Affairs sought an extra €25 million as it is preparing for Ireland's hosting of the EU presidency in 2013 and chairmanship of the Organisation for Security and Co-operation in Europe next year. In its comprehensive review of expenditure, the department said it faced "major international responsibilities" over the period and to that end needs a "significant temporary increase" in allocations. Additional temporary staff have been sanctioned for the EU presidency but the OSCE chairmanship would have to be serviced within "reducing resources", the review said. –LUKE CASSIDY
ENTERPRISE AND JOBS
The system whereby TDs are able to ask parliamentary questions should be subjected to a root-and-branch review to ensure it is fit for purpose, it has been suggested. The provision of information costs the Department of Jobs, Enterprise and Innovation €3 million per annum, according to the department's comprehensive expenditure review.– COLM KEENA
TAOISEACH
The awarding of costs arising from the Moriarty tribunal could be "very significant" and amount to multiples of the money allocated to the department, which funds the inquiry. The response of the Department of the Taoiseach to the comprehensive review of expenditure said the tribunal, which investigated payments to politicians, was funded by the department's vote. However, as the tribunal operates independently, third-party costs were not within the control of the department, which was not in a position to affect significant cost reductions.The document said there would be sustainable annual savings of over €3 million once the tribunal completed its work. – MARY MINIHAN
EXPENDITURE/REFORM
There is no rationale for the continuation of certain social housing supports and they should "reduce or cease or early sunset clauses should be introduced", according to a document submitted to the Comprehensive Review of Expenditure. The paper from the Department of Public Expenditure and Reform also said it was "unclear" why suggestions for reform of housing reliefs made by the Commission on Taxation in 2009 had not been implemented. "It is acknowledged that they would have a political dimension, but given the Exchequer need for resource savings it is unclear why they have not been implemented in full," it states.– MARY MINIHAN
AGRICULTURE
The Department of Agriculture said cutting its capital expenditure to under €200 million for 2012 could result in the termination of all payment schemes. The department said it had been given an allocation of €150 million for next year under the National Recovery Plan but the Minister was extremely concerned this was totally inadequate to meet existing commitments. It said more money was needed to encourage and facilitate capital investment across a broad range of activities and investment opportunities in the agri-food, fisheries and forestry sector. – SEÁN Mac CONNELL