Earlier this month Brian Lenihan announced that he would meet with each member of the cabinet within the coming weeks to discuss the necessary cuts to expenditure which were outlined by An Board Snip and advocated by the EU. These cuts will result in €2 billion being cut from current spending and €1 billion from capital spending. Following the rejection of the Croke Park agreement these cuts are likely to come from the Departments of Education, Health and Social Welfare (Social Protection), and have caused much speculation.
Minister for Social Protection, Eamon O’Cuiv has come under much scrutiny from where the possible cuts will come from within his portfolio, which covers social welfare payments, Child Benefit and Pensions.
Pensions have arisen as the first of the contentious issues, with the minister stating that he would not rule out across the board cuts of the Pension which currently stands at a standard rate of €219 per week. He did however claim he would examine the pension payments to those whom are still in full time employment; there has also been speculation that a means test will be introduced to ensure that those in need of state assistance are not to be penalised.
Minister O’Cuiv stated that no decisions have been made at present as to where the cuts will come from within his €22 billion portfolio but that he would focus on fraudulent claims as a way of cutting back costs.
Minister O’Cuiv also hinted at what was to come in relation to social welfare payments stating that he was also concerned for the younger generations whom have children to care for and have found themselves without employment. The minster stated to look at those whom are best placed to carry the burden irrespective of age.
Proposed Pension cuts have been a controversial issue with 15,000 people marching on the Dail for the last proposed cut in the entitlements, when in 2008 the Dail proposed the introduction of a mean tested medical card for the elderly which was subsequently rejected.
