Éamon Ó Cuív (Galway West, Fianna Fail)

As the Deputy will appreciate, the Government is keeping the current and prospective budgetary position under constant review in the context of its medium-term economic strategy. In that regard, the Government will consider in the coming weeks various possibilities for savings that could be advanced in budget 2011. As part of its preparations for that, the Government has decided that each Minister would identify possible savings within his or her remit and advise the Department of Finance of these by the end of this month.

In identifying possible savings I will seek to protect the vulnerable irrespective of age. The main objectives of the Government medium-term strategy are to assist economic growth and job creation through a restoration of competitiveness; to prevent the general Government debt rising to unsustainable levels; and to restore expenditure and taxation to more sustainable levels.

As part of the strategy, it was announced in budget 2010 that the Government intended to make a further adjustment in current Government spending in 2011 of the order of €2 billion. In addition, it is also intended to make adjustments in capital spending in 2011 of the order of €1 billion. Capital spending, estimated at just over €10 million in 2010 for my Department, forms a tiny fraction of the nearly €21 billion overall expenditure and of capital expenditure generally.

My Department is currently engaged in the process of identifying a menu of initial options for structural programme savings in 2011. This process will also have regard to the outstanding recommendations of the special group on public service numbers and expenditure programmes. The options identified will, in turn, be considered by Government as one element of its deliberations on budget 2011 over the forthcoming months.

It is important to stress that, at this stage, no decisions have been taken either by me or by the Government in regard to changes in social protection schemes and services in 2011. Rather the options which will be identified by my Department will be designed to assist and inform the Government's consideration of the next budget. The sustainability of public finances is crucial for all and I genuinely believe that the Government must take steps to reduce overall public expenditure and restore stability to the public finances if we are to avoid the risk of making the economic situation far worse for everyone in society. This includes the recipients of the various schemes and services operated by my Department.

The Government has already made difficult decisions in this regard and the next steps towards recovery will require further such decisions. At the moment, I am engaged in an intensive round of consultations with a wide range of welfare representative organisations and I am listening carefully to their views. In an uncertain international environment, my priority will be to ensure that the overall Government strategy is advanced and to protect those most in need in a manner which is sustainable in the years ahead.

See this speech in context