Brian Lenihan Jnr (Dublin West, Fianna Fail)

The basis of the expenditure savings for 2009 was set out in my budget of 14 October 2008 and supplementary budget of 7 April 2009. A range of instruments has been developed in the human resource area to contribute to the implementation of these savings, notably the incentivised scheme of early retirement in the public service, ISER, the special Civil Service career break scheme, ICB, and the shorter working year scheme, together with the moratorium on the filling of public sector vacancies by recruitment or promotion. Details of these schemes were announced in the context of the supplementary budget in April last. In addition, and as signalled in the April budget, an adjustment of approximately €4 billion is required for next year to meet the Government's fiscal consolidation targets.

Given this context, the Government must consider all expenditure areas. In this regard, one must bear in mind that approximately one third of gross current expenditure is on social welfare, approximately one third on the public service pay bill and one third of all the remaining expenditures are on the programmes, including the capital programmes. The Departments of Social and Family Affairs, Health and Children and Education and Science, collectively, make up approximately 80% of current expenditure. It is not feasible that an adjustment of the scale envisaged can be made without significant contributions from these various areas.

Naturally, this will involve difficult decisions for the Government in the lead up to budget 2010. In this overall context, the report of the special group on public service numbers and expenditure programmes will be taken into consideration. As regards the human resources implications of the forthcoming expenditure savings, discussions are ongoing with the social partners on the achievement of the required savings, including savings of €1.3 billion in 2010 from the public sector payroll. While the task ahead is challenging, it is one the Government is determined to see through in the best interests of the country.

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