Reckless spending led to cuts - Bruton

The budgets of the State's major hospitals would have to be cut next year to cope with the Minister for Finance's spending plans…

The budgets of the State's major hospitals would have to be cut next year to cope with the Minister for Finance's spending plans, Fine Gael warned last night.

Instead of offering "a steady hand", the Government was giving the economy "a boot in the groin", Fine Gael's finance spokesman, Mr Richard Bruton, said.

"The approach may be good politics. Inflict the pain now, when an election is years away. However, it is not good for the country," he said.

The Government's difficulties stemmed from "one reason and one reason only: its reckless spending in the last two years. They have used up the country's reserves".

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The Government's strategy would hurt "the weak and the voiceless", while the Minister and his colleagues who "were well belted into their plush seats will not suffer," Mr Bruton said.

"The hit list is familiar: patients seeking hospital admission, where beds will close; children in substandard school buildings; old people living in fear of crime; homeless families waiting for housing; people on community employment who will go on the dole; patients on long-term medication," he declared.

"There is not a single sign of serious reform to deliver better value for money. . .Once again, we are seeing short-sighted measures. Business will suffer delays, congestion and job losses as the deep cuts in productive infrastructure take hold.

"Over the last year, the Minister for Finance has not carried out a single detailed examination of a spending programme to ensure that money was well used.

"The sad reality is that this Minister has allowed the procedures for controlling public spending to rust over. Mechanisms of evaluation have been dismantled."

Labour's finance spokeswoman, Ms Joan Burton, said the Estimates would bring "cruel cuts in essential public services and long-term economic stagnation'.

"These Estimates represent the final chapter in an unprecedented act of betrayal by Fianna Fáil of the electorate. The cuts are in fact far deeper than the Government is prepared to admit.

"By shredding its own National Development Plan, the Minister has forfeited all claims to economic competence and vision because he is condemning the Republic to slow economic growth and job losses.

"The National Development Plan is already hopelessly behind schedule because of his inept management and the problems will hurt Ireland's future competitiveness."

Growth forecasts were "gloomy enough," she said. "This policy U-turn will send the worst possible signals to investors. It doesn't need to be this way."

The National Pension Reserve Fund could be used to fund major investment: "Mr McCreevy's conservative political approach to economic management defies economic logic."

The Green Party's Mr Dan Boyle TD accused Mr McCreevy of "swingeing cutbacks". "Charlie McCreevy has obviously decided that the poor and vulnerable are his enemy.

"These Estimates finally give the lie to the myth that this Government has been engaged in spending adjustments."

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times