A round up of todays news- all this budget stuff would wear ya out but...
Carmel



EU opens door for Lenihan to increase borrowing




By Michael Brennan in Prague

Saturday April 04 2009

FINANCE Minister Brian Lenihan got a clear signal yesterday the EU will allow us
to borrow far more than originally planned in next week's emergency Budget.

The Government had promised to keep its rapidly rising budget deficit within the
agreed limit of economy activity this year, which would have meant imposing more
taxation increases and spending cuts.

But Mr Lenihan said the European Commission was happy with the approach the
Government was taking -- which is expected to lead to a deficit of more than
9.5pc of gross domestic product (GDP).

"I have to say there is huge goodwill for Ireland here, because we've already
demonstrated a determination to contain our public expenditure," he said.

Mr Lenihan's comments came after European Commissioner for Economic Affairs
Joaquin Almunia appeared to soften its line on Ireland meetings its target of
reducing the deficit.

Mr Almunia added: "They are committed to achieve this target and we fully
support their commitment."

When asked again last night if the EU would be insisting on Ireland keeping its
budget deficit to 9.5pc of GDP, Mr Almunia said he accepted that the situation
had worsened in Ireland since the commitment was given.

He said the commission would assess the Government's position after the Budget
on Tuesday, but felt its approach was "the right one".

Mr Lenihan was in Prague yesterday for a meeting with Mr Almunia and EU finance
ministers. He said there was no "disconnect" between himself and Mr Almunia on
the budget deficit target because the EU Commissioner was working on the basis
of previous figures submitted by the Government last January.

Deteriorated

"Commissioner Almunia fully understands the position in Ireland. Clearly the
position has deteriorated and again the position will be made clear next Tuesday
in the supplementary budget," he said.

Last month, the European Commission gave Ireland until 2013 to bring its budget
deficit below 3pc of GDP, which is the required target for all EU members.

If action is not taken in next week's emergency Budget, our spending will reach
?65bn this year and our income will be just ?34bn -- leaving a potential budget
deficit of 12.75pc.

- Michael Brennan in Prague




Child benefit to avoid Budget axe -- for now

By Fionnan Sheahan and Michael Brennan in Prague

Saturday April 04 2009

CHILD benefit and social welfare payments will escape the axe in Tuesday's
crisis Budget.

And junior ministers will survive the swingeing cutbacks.

There were strong indications last night, however, that all three areas would be
hit later in the year.

But the early childcare supplement, which has already been slashed twice in the
past six months, looks to be under pressure in the Budget.

The revelations came as Finance Minister Brian Lenihan received a major boost
with the EU signalling it would allow the Government to borrow far more than
originally planned.

Child benefit is expected to be left alone until a report comes back from the
Commission on Taxation.

It will make proposals on ways to tax it for higher earners.

The Cabinet is due to sign off on the final details of Budget on Monday.

Junior ministers are now thought to have been given a brief reprieve pending a
report on Dail reform.

Taoiseach Brian Cowen yesterday gave a clear indication there would be changes
to their numbers. "I've been indicating that obviously we're looking at Dail
reforms within the reforms,"he said.

Mr Cowen said there were many issues in the political system that would need to
be addressed.

However, government sources said the issue was likely to dealt with by a wider
report on reform of the entire political process.

Child benefit, in particular, and reductions in social welfare rates were on the
table as areas to cut spending were being sought.

The social welfare bill is going up to ?21.6bn this year, accounting for 38pc of
current spending.

The lengthening dole queues mean unemployment benefits are now expected to cost
?4.7bn -- up from the ?3bn at the start of the year.

The Government appears to have decided to leave social welfare spending alone,
but it will warn this won't be the case indefinitely.

The Commission on Taxation report, to be published later in the year, is
expected to recommend that child benefit be taxed. The Commission will also put
forward a plan to reform the entire income tax system.

In the interim, though, the Government will increase income levies to bring in
additional taxes across the board.

Meanwhile, Mr Lenihan got a clear signal yesterday that the EU will allow us to
borrow far more than originally planned in next week's emergency Budget.

The Government had promised to keep its rapidly rising budget deficit within the
agreed limit of economy activity this year, which would have meant imposing more
taxation increases and spending cuts.

But Mr Lenihan said the European Commission was happy with the approach the
Government was taking -- which is expected to lead to a deficit of more than
9.5pc of Gross Domestic Product.

- Fionnan Sheahan and Michael Brennan in Prague



Two-thirds of planned school buildings face axe in Budget




By Michael Brennan Political Correspondent

Thursday March 26 2009

NEW school buildings are set to bear the brunt of the Government's ?2bn capital
spending cuts in next month's emergency budget, the Irish Independent has
learned.

Long-awaited primary and secondary school projects are in the firing line after
it emerged that 70pc of the funding earmarked for Department of Education
capital spending has not been committed.

Although the Government has consistently emphasised the importance of
'labour-intensive' school building projects, the cutbacks put the education
capital budget in peril.

Finance Minister Brian Lenihan has pledged to cut ?2bn from an overall capital
spend of of ?8bn that is budgeted but has not been committed.

This puts any project where a contract is not signed in the firing line, which
the opposition says could lead to a "day of devastation" for schools in next
month's emergency budget.

The Irish Independent has learned that just ?278m of the ?904m education capital
budget for education is contractually committed.

This means just 30pc of that capital funding is guaranteed to be spent. By
comparison, most other Government departments have nailed down 80pc of their
capital funding with legally binding contracts. The percentage is even higher in
Agriculture, where 99pc (?452m of the ?454m) of the capital budget is
contractually committed.

Among the other major Government projects which remain uncommitted are the
National Concert Hall, the National Children's Hospital, the Thornton Hall
super-prison and three decentralised offices in Portlaoise, Mullingar and
Carlow.

The revelation comes as Taoiseach Brian Cowen admitted yesterday the Government
is planning to borrow more to plug the hole in public finances.

Labour party finance spokeswoman Joan Burton last night said: "If the Government
cuts back the uncommitted spending in the capital programme, my fear would be
that a lot of the school projects would be in jeopardy."Only 43 school building
projects have guaranteed capital funding for this year, with another four
secondary schools being built using the public-private partnership model.

These schools were announced earlier this month by Taoiseach Brian Cowen and are
all located in his Laois-Offaly constituency -- in Bannagher, Ferbane and
Portlaoise (two schools).

Around ?656m of the total education capital budget is dedicated to primary and
secondary school building projects, with the remaining ?248m mainly going to the
third-level sector.

Ms Burton said it made no sense to cut back on school building projects because
they were a key method of generating construction jobs.

Education Minister Batt O'Keeffe had promised that his school building programme
would deliver 3,300 jobs this year, based on the principle of one job per
?255,000 of investment. But if two thirds of the capital budget is scrapped,
2,300 of these jobs will fail to materialise.

Devastation

Meanwhile, Mr O'Keeffe yesterday told the Dail he would spend ?48m this year on
pre-fab accommodation for schools.

Fine Gael education spokesman Brian Hayes said the department had made a
"complete dog's dinner" of the school building programme by failing to sign
contracts in time.

"Given their commitment to spend on schools and get builders back to work, it
would be an absolute day of devastation for schools if this money was now to be
lost," he said.

A spokesman for Mr O'Keeffe was unable to guarantee that the school capital
budget would be left untouched.

"I wouldn't be speculating on any discussions around expenditure he said.

Traditionally, the second round of school building is announced at Easter to
coincide with the teachers' unions conferences -- often dominated by complaints
about crumbling school buildings and draughty prefabs.Sinn Fein North West MEP
candidate Padraig Mac Lochlainn saidconditions in the school were "completely
unacceptable".

- Michael Brennan Political Correspondent















http://www.petitiononline.com/taraeire/petition.html
Please sign the Petition and pass it on.

[Non-text portions of this message have been removed]