Departments to make cuts to save €3bn
All Government departments have been told to prepare a list of cuts as part of a €3bn savings package to be ready by September 11.
It is understood that €1bn of the cuts will come from social welfare payments.
The Department of Finance has written to the secretary general of each department and said that the savings for next year should be based on the recommendations from An Bord Snip.
According to the letter the Government is focusing on reigning in spending rather than increasing taxes.
It also states that the Government departments should provide a reason for omitting any recommendations from An Bord Snip.
The special group, chaired by economist Colm McCarthy, identified potential cuts of €1.84bn in the social welfare budget as well as other potential cash-saving measures such as amalgamating city and county councils.
It is expected that the Government is in for a difficult time when the Dáil resumes next month.
Taoiseach Brian Cowen lost two Fianna Fáil backbenchers last week in relation to plans to move cancer services from Sligo to Galway.
Former Minister for Trade John McGuinness said there was “serious questions” about Mr Cowen’s leadership.
It is also understood that opposition parties are gearing up for a snap General Election in November.
Some believe the Green Party could leave the Government coalition if its membership does not back the renegotiated Programme for Government that Senator Dan Boyle called for in recent months.
Meanwhile, the Ceann Comhairle, John O’Donoghue, is remaining tight-lipped despite further revelations of money spend in the Department of Arts, Sports and tourism when he was Minister.
It has emerged that €1,400 was spent per day to hire a chauffeur to drive Mr O’Donoghue during the Cheltenham Racing Festival.
However Minister for Europe Dick Roche defended Mr O’Donoghue describing him as humble and admitted that he himself was horrified when he learned that the cost of a Parisian hotel he had stayed in was €1,500 a night.
