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Thread: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

  1. #1
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    Default Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    http://www.independent.ie/national-n...s-2857134.html

    Public Expenditure and Reform Minister, Brendan Howlin, has been working for weeks on plans to cut 10 billion euro from public spending. After several years of staff recruitment embargo and cuts, some departments are already cut to the bone. There are reports of the budget being brought forward to September, and of Ministers being reluctant and slow to respond to Howlin's demands.
    Next year, Budget 2012 will contain a package of €3.6bn in tax hikes and spending cuts -- €1.5bn in tax and €2.1bn in cuts.

    However, a memo from the minister's office says each department must come up with savings "by reference to the 'rule of thumb' 15-20pc level".

    The letter from the Department of Public Expenditure's secretary general, Robert Watt, says the overall budget targets are subject to final government decision.

    "You should bear in mind that to afford the Government maximum scope for decisions about prioritising resources in certain areas, we should not be constrained from putting forward a full and comprehensive set of savings options, even where this goes beyond the indicative ceiling," he said in the letter sent two months ago.

    Mr Watt said departments should "put forward options for achieving reductions in staff numbers".

    Ways

    Among the ways to reduce numbers listed were "rationalising schemes and programmes, moving to e-payment rather than traditional processing, outsourcing, and identification of specific areas where incentivised exit schemes may be appropriate".

    "The question of how to deal with surplus staff identified in this way -- e.g. costs of exit packages where necessary -- will be dealt with centrally by the Department of Public Expenditure and Reform, and should not in itself be a bar to your full consideration of this important aspect of the comprehensive spending review," his memo says.

    Getting rid of the quangos already in line for the chop is described as "early wins" being put forward by departments.

    "On balance, it may be appropriate to put forward a more comprehensive overall package of agency rationalisation measures -- both a speeding-up of existing proposals and announcement of some new proposals -- as tangible 'early wins', while signalling that broader issues around agency rationalisation will be looked at critically in the comprehensive spending review," the memo says.

    The level of detail shows Mr Howlin and his officials have had extensive contacts with his colleagues in other departments over the past number of months.

  2. #2
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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    "The question of how to deal with surplus staff identified in this way -- e.g. costs of exit packages where necessary -- will be dealt with centrally by the Department of Public Expenditure and Reform"

    In a private business the costs of shedding staff voluntarily would be expected to be recouped in around 3 years but for the state it will take a lot longer.

    When a business lets staff go it no longer has any financial obligation to them and the state pays a sizeable chunk of the redundancy. When the government makes people redundant it has to carry the total redundancy cost and, given the current jobs market, will likely have to pay social welfare to the former employees for some time. It's even possible that the cost of paying SW to lower paid staff could be greater than the net cost of employing them was.

    "On balance, it may be appropriate to put forward a more comprehensive overall package of agency rationalisation measures -- both a speeding-up of existing proposals and announcement of some new proposals -- as tangible 'early wins'"

    Hit list of 'awkward' agencies drawn up?

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by Baron von Biffo View Post
    "The question of how to deal with surplus staff identified in this way -- e.g. costs of exit packages where necessary -- will be dealt with centrally by the Department of Public Expenditure and Reform"

    In a private business the costs of shedding staff voluntarily would be expected to be recouped in around 3 years but for the state it will take a lot longer.

    When a business lets staff go it no longer has any financial obligation to them and the state pays a sizeable chunk of the redundancy. When the government makes people redundant it has to carry the total redundancy cost and, given the current jobs market, will likely have to pay social welfare to the former employees for some time. It's even possible that the cost of paying SW to lower paid staff could be greater than the net cost of employing them was.

    "On balance, it may be appropriate to put forward a more comprehensive overall package of agency rationalisation measures -- both a speeding-up of existing proposals and announcement of some new proposals -- as tangible 'early wins'"

    Hit list of 'awkward' agencies drawn up?
    This is as much about destroying public services and demoralising people as it is about saving cash.

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Great, more money out of the economy. My guess is €1.5bn in extra tax lobbed onto the joe soap worker and €2.1bn taken out of dole payments school / hospital funding.

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Phil Hogan has apparently confirmed that he can't afford to take any cuts personally.

  6. #6
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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Brendan Howlin - Labour Party stalwart.
    A champion of the poor and disenfranchised.
    I'm sure it won't be too bad.
    What could possibly go wrong?
    "This isn't working,
    My middle-brow f**ker"

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by C. Flower View Post
    Phil Hogan has apparently confirmed that he can't afford to take any cuts personally.
    Apparently we all got to take cuts to pay for Phils personal circumstances.

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by C. Flower View Post
    This is as much about destroying public services and demoralising people as it is about saving cash.
    Absolutely. Tilling the ground for privatisation.

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by Fing Fers View Post
    Apparently we all got to take cuts to pay for Phils personal circumstances.
    Would you want it any other way?

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by Baron von Biffo View Post
    Absolutely. Tilling the ground for privatisation.
    They were quite open about privatisation during the election.
    Nobody should be surprised about this.
    "This isn't working,
    My middle-brow f**ker"

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Don't forget.

    [ame="http://www.youtube.com/watch?v=ueeAcPi1kKg"]Enda Kenny MacGill Summer School 2011 - YouTube[/ame]

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by Griska View Post
    They were quite open about privatisation during the election.
    Nobody should be surprised about this.
    True. Brendan 'Hacker' Howlin's enthusiasm for it is a bit surprising. Or is that just me being naive?

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by Baron von Biffo View Post
    True. Brendan 'Hacker' Howlin's enthusiasm for it is a bit surprising. Or is that just me being naive?
    There are a lot of worse qualities than naivité.

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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Quote Originally Posted by FIVE View Post
    I remember that one. I thought at the time I had imagined the choice of verb

  15. #15
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    Default Re: Budget to Be Brought Forward to September ? 10 billion in Cuts as Well as Extra Taxes

    Its going to be a fire sale of sorts I would imagine. First to go will be the ESB for an absolute song...

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