Severe Budget Targets Public Spending

The Irish Government has this afternoon set out the first part of its spending plans in a Dáil Budget statement by Minister for Public Expenditure and Reform Brendan Howlin.

He has been announcing some €1.4bn worth of spending cuts, with the biggest cuts in Health & Social Welfare and it has also emerged that college registration fees are to rise.

The second part of his announcement will follow tomorrow but in summary, so far there are reductions of €475m in Social Protection; a €543m cut in Health and a €400m cut in public sector pay bill while third level student contributions will rise by €250.

There will also be a cut of six weeks in the fuel allowance and a reduction in child benefit for third and subsequent children.

Other cut backs will be in Agriculture, Marine and Food - with savings of €105m, Transport, Tourism and Sport - with savings of €45m and Environment, Community and Local Government - with savings of €34m.

The Government's decisions will reduce public spending to €55.8bn in 2012 compared with €57.7bn in 2011.

In specific measures, a 2% reduction in core funding for higher education will secure savings of €23.6m while an increase of €250 in the third level student contribution will secure savings of €18.5m.

Changes to fee and maintenance supports for new post-graduate students and reducing maintenance grants generally will deliver savings of €12.6m.

The measures in the education area will save €132.3m in 2012.

These measures include a requirement for Post Primary Schools to manage guidance provisions within their existing Pupil Teacher Ratio allocations, which will save €10.4m and a reduction in capitation grants to schools by 2% making savings of €7m.

There's also to be a phased withdrawal from 2012 of supports in some schools from earlier disadvantage schemes, pre-dating the current DEIS programme, will make savings of €6.5m and a reduction of costs associated with trainee and apprenticeship schemes will yield €19.2m in savings.

Health is allocated €13,644m in 2012. A reduction in numbers and containing pay costs will save €145m.

The Budget will also introduce measures to reduce the price of drugs to save €112m and increase the monthly threshold from €120 to €132 under the Drug Payment Scheme to save €12m.

They will also improve the generation and collection of private income in public hospitals to save €143m. and secure 2% efficiencies in disability, mental health and children's services, saving €50m.

(BMcC)