- McCarthy Report
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The Special Group on Public Service Numbers and Expenditure Programmes (also known as An Bord Snip Nua) was an advisory committee, headed by the right-wing economist Colm McCarthy,[1] established by the Irish government in 2008 to recommend cuts in public spending. It issued its findings, commonly known as the McCarthy report, on 16 July 2009.
The report was in two volumes. It recommended approaches to a potential €5.3bn in savings, including recommendations for 17,300 public service job cuts and a 5% drop in social welfare.[2]
Contents
Name
The committee, colloquially dubbed "Bord Snip Nua" by newspaper journalists,though this phrase was never generally used by the public, was a committee with a similar remit to one established in 1987, known as 'An Bord Snip'. Bord Snip is a mix of English and Irish words that can be translated as "snip board". Bord Snip Nua means the "new" Bord Snip.
The name is intended to be humorous. Many state agencies in the Republic of Ireland have the words an bord (meaning "the board") in their title, for example Bord Iascaigh Mhara (the Irish Sea-Fisheries Board); "snip" refers to the cost-cutting remit of the group.
Background
As a result of declining global conditions, a collapse in the building industry and a contraction in bank lending, an Irish financial crisis emerged in 2008. From a peak in 2007, tax revenue from VAT (value-added tax, a form of sales tax), Stamp Duty and Capital Gains Tax, all fell sharply in nominal terms. In an attempt to curtail declining income tax revenue, an additional income levy on 1% and 2% was introduced and it became clear that a cut in public spending was required. The government was facing a budget deficit of some €6 billion for the fiscal year '09.
There were thus calls for the formation of a new "Bord Snip" to identify areas for cut-backs in public expenditure. A group of experts was called together at the behest of the Minister for Finance, Brian Lenihan.[3] The Committee was a four person group, that included Colm McCarthy, an economist at University College Dublin, and Donal McNally, Second Secretary in the Department of Finance
Panel of advisors
- Maurice O'Connell, former Governor of the Central Bank and Financial Services Authority of Ireland
- William Slattery, Managing Director, State Street Corporation (Ireland)
- Mary Walsh, former Partner PriceWaterhouseCoopers (Ireland)
- Pat McLaughlin, Business Consultant and former Deputy Chief Executive of the Health Service Executive[4]
Brief
The Taoiseach (prime minister), Brian Cowen, stated that the
Special Group’s examination of all programmes funded through public expenditure will focus on whether scarce financial resources are being deployed to achieve priority policy objectives. The Group will identify options for savings in the context of the Government’s fiscal objectives as set out in Budget 2009. It will also ensure that public expenditure is being used to address relevant priority policy objectives in the current fiscal environment.[5]
- The group was charged with identifying cuts in spending and staff numbers, quangos (quasi-autonomous government organisations) that could be merged or abolished and recommending ways of obtaining better value for taxpayers' money.
- The group had scope to examine the terms and conditions, tenure and pension entitlements of new recruits to the public service.
- The group was charged with reducing or discontinuing expenditure programmes with a view to eliminating the current budget deficit by 2011.
Implementation
In March 2010, Lenihan said that, of the report's 271 recommendations, the government had decided to implement 32 in full and 89 in part, with projected savings for the year estimated at €1.7b.[6] In June, Lenihan said that, of the report's 289 [sic] recommendations, the government had by then implemented 42 in full and 103 in part, and that the report remained under consideration.[7] Later that year, various ministers answered Dáil questions outlining the savings made by their departments:
See also
- Public service of the Republic of Ireland
- State-sponsored bodies of Ireland
- Economy of the Republic of Ireland
References
- Report of the Special Group on Public Service Numbers and Expenditure Programmes: Volume 1 (Prn. A9/0987); Volume 2 (Prn. A9/0988)
Notes
- ^ http://www.theirelandinstitute.com/citizen/c02-oconnor-tiger-page.html
- ^ 'Bord Snip' reveals €5.3bn savings plan RTÉ.ie 16 July 2009
- ^ "Public service must be reformed". The Irish Times. 27 November 2008. http://www.irishtimes.com/newspaper/opinion/2008/1127/1227699545226.html. Retrieved 6 February 2009.
- ^ "Members of An Bord Snip are named". Business World. http://www.businessworld.ie/cgi-bin/printer_friendly?a=2345889. Retrieved 6 February 2009.
- ^ "Taoiseach's Statement on Transforming Public Service". Department of the Taoiseach. 27 November 2008. http://www.taoiseach.gov.ie/index.asp?locID=586&docID=4117. Retrieved 6 February 2009.
- ^ Written Answers - Departmental Reports Dáil debates, 10 March 2010
- ^ Written Answers - Departmental Reports Dáil debates, 7 July 2010
External links
- What is the Special Group on Public Service Numbers and Expenditure Programmes? Transforming Public Services programme, Department of the Taoiseach
Categories:- Economy of the Republic of Ireland
- Real estate bubbles of 2000s
- 2000s in Ireland
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