Ministers concerned Budget expectations are getting too high

Minister for Finance Brian Cowen is to hold further one-to-one meetings with Cabinet colleagues as preparations continue for …

Minister for Finance Brian Cowen is to hold further one-to-one meetings with Cabinet colleagues as preparations continue for the budget.

At a meeting yesterday in Government Buildings, Ministers discussed a number of proposals on better childcare services, along with social welfare increases. The Budget takes place on December 7th.

Last Thursday Mr Cowen announced that Government spending in 2006 would rise by 7 per cent to €48 billion. The largest increases will go to the Departments of Health, Education and Justice.

No details of the discussions were announced by the Government after yesterday's meeting, although weekend meetings of this nature have become relatively common in recent years.

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The Government, however, is becoming increasingly concerned that expectations about its Budget childcare package have grown so large that they cannot be satisfied.

Hinting that the package would be implemented over several years, Minister for Agriculture Mary Coughlan, speaking last night on RTÉ's The Week In Politics, said the issue would be dealt with "in a structured way".

The Cabinet has a number of options before it such as increasing paid maternity leave from the current 18 weeks to 26 weeks, although even this latter level is not generous by continental EU standards.

A 30 per cent increase in child benefit payments to all children under five is also being examined, along with the suggestion that one year's free pre-school education could also be provided.

Last week Mr Cowen repeatedly cautioned against Budget day expectations.

He emphasised that "no one can wave a magic wand to sort this problem out".

Maternity leave in the State currently lasts for just 18 weeks and is worth no more than €249 per week, which often means that women return to work before using up their legal entitlements.

The number of places in creches/nurseries has risen from 57,000 five years ago to 82,000 today, and this figure will rise further given the existence of tax-breaks for their construction.

Meanwhile, Fine Gael has said the Government's budgetary rules must be overhauled as existing rules failed to deliver better services.

Criticising Minister for Justice Michael McDowell, the FG deputy leader, Richard Bruton, said the Department of Justice was now costing every household €1,500 a year.

"It is not unreasonable to ask why has Minister McDowell demanded €360 more in tax from every household in the country when all he has delivered is sharply-falling detection rates, minimal extra gardaí on the streets, and a much higher risk of being a victim of violent assault and antisocial behaviour?

He also claimed the Department of Health was now costing the average household €8,650 a year, up 54 per cent on the 2002 figure.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times