Noonan says Estimates show lack of economic competence

The Estimates showed no evidence of "competent economic management" by the Taoiseach or the Minister for Finance, Fine Gael claimed…

The Estimates showed no evidence of "competent economic management" by the Taoiseach or the Minister for Finance, Fine Gael claimed last night.

The party's finance spokesman, Mr Michael Noonan, said that while current expenditure was set to increase by 7 per cent and capital expenditure by 25 per cent, there was little indication that there would be more than a marginal increase in services.

The Estimates showed some prioritisation of programmes within individual departments, but there was no sign of a planned and managed prioritisation of public spending to address systematically the many public needs, he said.

He cited the fact that the allocation for the Dublin Transportation Office had been reduced by 2 per cent despite the fact that traffic in Dublin was chaotic; and even though the "one-stop shop" for asylum-seekers was closed this week, the response from the Department of Justice in the Book of Estimates was to cut the provision for asylum-seekers by 4 per cent.

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Mr Noonan also criticised the fact that in the year in which the Government signalled all-out war on poverty, the Combat Poverty Agency was getting only an extra £90,000. He said the large increases in projected current expenditure for the main services, such as health and education, would be taken up in extra pay, and though the housing crisis continued, Government was providing only an additional 5 per cent for the water and sewerage facilities necessary to service building land.

Mr Noonan also said a major prioritisation of food safety would have been expected. But the Food Safety Authority got a total of £3 million, despite a multiplicity of Euro-wide food scares and the GM controversy.

The Fine Gael spokesman on public enterprise, Mr Ivan Yates, said no meaningful provision was made in the Estimates to increase the public subsidy on bus transport in Dublin. "The Minister's rhetoric on enticing people out of motor cars into buses lacks meaningful measures," he said.

The Labour Party spokesman on finance, Mr Derek McDowell, said it was illogical for the Government to continue to set itself a current spending increase ceiling of 4 per cent. This would restrict growth in the economy and the quality of our services would remain inadequate, he said.

"Against the background of these Estimates the Government has an unprecedented opportunity to invest heavily in service provision", Mr McDowell said.

"However, allocations for service provision do not appear in today's publication. Does this mean that older people with disabilities and those with chronic health problems will have to continue to wait? "Predicted savings in unemployment payments, pre-retirement payments and in employment supports should continue to focus on people who are yet to reap the benefits of our economic performance."

Mr McDowell said it would be incorrect to deduce too much from the Book of Estimates and a full analysis of the Estimates could take place only after the National Development Plan was launched.