An Bord Snip Nua Report

As a result of the declining global conditions, a collapse in the construction industry and a contraction in credit provided by financial institutions, Ireland began experiencing a financial and economic crisis in 2008.

In attempt by the government to curtail the declining tax revenue, an additional income levy of 1% and 2% was introduced. However it soon became evident that a cut in public expenditure was required. The government was looking at a potential deficit of six billion in public finances for the fiscal year of 2009.

The main purpose of the newly formed “Bord Snip” was to identify potential areas for cut backs in public expenditure. The newly formed “Bord Snip” was formed at the behest of the Minister for Finance Brian Lenihan. It was a six person group, headed up by UCD economist Colm McCarthy and the group was supported by a Secretariat provided by the Department of Finance.

The Group formulated its report between January and June 2009 and published its report on the 16th of July 2009. The group printed the following recommendations regarding the various state departments:

The Department of Defence

• The report states that the number of people in the defence forces should be reduced by 500.
• The report also suggests a total staff reduction of 520 with an objective of saving €53.4 million.
• The report also urges the government to accelerate the plans to close barracks particularly Cathal Brugha in Rathmines in Dublin.

The Department of Education & Science

• The report calls for the amalgamation of smaller primary schools, staffing and pay efficiencies of € 150 million in the primary and post primary sectors.
• It calls for the savings of € 140 million from staff costs in the third level sector and a lower spending allocation for school transport.
• The report says the staffing schedule – the number of extra pupils needed by a school to qualify for an additional teacher – should be increased from 28 to 29 for primary schools and from 19 – 20 at post primary.
• The report suggests a total staff reduction of € 6,930 with an objective of saving € 745.9 million.

The Department of Enterprise, Trade and Employment

• The report calls for savings of € 87 million in Enterprise Ireland, IDA Ireland and Fas by rationalising regional offices and sharing services.
• The report states that funding with regard to Fas Services to Business and Skillnets should be stopped.
• The report suggests a total staff reduction of 594 with an objective of saving € 237.7 million.

The Department of Health

• The report identifies € 391 of savings from cuts in HSE staff numbers.
• It states the size of the Department of Health & Children should be reduced in size by 10% a year for three years.
• It calls for an increase in the threshold for the Drugs Payment Scheme from € 100 to € 125 a month and increased hospital charges.
• The report states that changes in the medical card income guidelines could save € 100 million.
• The report suggests a total staff reduction of 6.168 with an objective to save € 1,229.5 million.

The Department of Justice

• The report calls for a review of pay and allowances in the sector and rationalisation of the Courts Services.
• It states the Garda network be reduced by 50% from the current 703.
• The report says tipstaff in courts should be abolished and some smaller District and Circuit Courts should be closed.
• The report suggests a total staff reduction of 540 with an objective to save € 136.4 million.

The Department of Social & Family Affairs

• The report calls for a general 5% cut in rates and changes with regard to child benefit. The report also suggests that second social welfare payments should be phased out and the Family Support Agency should be abolished.
• The report outlines an objective to save € 1,847.6 million.

The Department of Transport

• The report calls for a € 20 million cut in spending on roads maintenance and improvement, the outsourcing of driver testing and vehicle licensing and no more funding for the Rural Transport Scheme.
• The report also states that lightly used rail lines should be closed and replaced with bus services. The lines affected are Limerick Junction to Rosslare, Limerick-Ballybrophy and Manulla Junction to Ballina.
• The report outlines a total staff reduction of € 80 with an objective to save € 127.1 million.

 

 

 

Karl Foley

Press Officer
John McCarrick and Associates
11 Dunville Avenue, Rathmines
Telephone:01 4960102
Fax: 01 4973717
Email: info@jmccarrick.com

 

 

 

 

 

 

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