Available resources must be targeted
Speaking on the Estimates for the Public Service published today (14 November 2002), the Taoiseach Bertie Ahern, T.D., emphasised the importance of ensuring that public spending was put on a sustainable basis. In doing so, we had to be realistic about what could be afforded in the light of the downturn in the international economy and its obvious effects here in Ireland.
The Government also had to be clear about its priorities within the targeted increase of 2% in gross spending. That was reflected in the fact that 65% of available resources were being devoted to services in the Departments of Health, Social and Family Affairs and Education and Science. A similar approach to priority setting was evident in the provision for the Public Capital Programme.
The Taoiseach pointed out that low rates of economic growth are creating significant funding problems for governments throughout the developed world. Correcting emerging deficits is a major challenge to our EU partners in this context. Significant reductions in public spending have already been announced, for example, in Germany, in Italy - where a 10% reduction in central government spending and a 2% reduction in allocations to the regions have been announced, and in Portugal where several major public investment projects have been postponed indefinitely.
Referring to the Vote for his own Department, the Taoiseach pointed out that the allocation of €23.64m represents a reduction of 34% on the 2002 Estimate. This reflects reductions as a result of targeted efficiencies in its Administrative Budget (down by 4.7%), and greater efficiencies as a result of bringing together the NESC, NESF, National Centre for Partnership in a new office (combined reduction of 8.6%). Other reductions reflect a realistic estimate of the costs arising in 2003 from the efficient discharge of the Departments responsibilities.
In the case of the law offices, increases in the Votes of the Office of the Attorney General and of the Chief State Solicitor reflect the installation of new IT systems to support their operations. An increase of 15% in the Vote for the Office of the Director of Public Prosecutions provides for an increase in activity reflected in the volume of cases going through the Central Criminal Court and other areas of additional work facing the Office.
In the case of the Central Statistics Office, the apparent 40% decrease in expenditure reflects primarily the exceptional costs associated with the undertaking of the Census of Population last year. The allocation of just over €32m will, however, require a phasing of a number of initiatives being considered by the CSO, as well as the deferral of a number of a new projects.
ENDS
14 November 2002