The chief executive of the National Treasury Management Agency, Dr Michael Somers, has renewed his criticism of the Department of Finance.
Speaking to the Joint Oireachtas Committee on Finance and the Public Service, he said that generally he does not bring the differences between the NTMA and the Department to the Minister's attention. But he added that when he was secretary of the Department of Defence he found that he was subject to "extraordinary control" by the Department of Finance. The Department insisted on examining every item of spending by other departments, he said. He added that if he were to be secretary of a department again, he would consider taking legal advice to see if that kind of control is constitutional.
Also speaking at the committee, the Minister for Finance, Mr McCreevy, said that the management of government departments was changing under the strategic management initiative and that more control over spending was now being devolved to department managers.
Referring to comments in an Irish Times interview in which Dr Somers questioned the year-end Exchequer figures in light of the high end-November surplus, the Minister said the Government spent £1.1 billion in the first 11 days of December. He said the Government spent £857 on day- to-day spending and £254 million on capital expenditure between December 1st and 11th. This high level of spending was sharply reducing the £1.9 billion Exchequer surplus recorded at the end of November, he said.
Mr McCreevy insisted that he gets on exceptionally well with Dr Somers and has a good relationship with his officials.
"It is possibly not a marriage made in heaven but is not as bad as the one between Deputy Prionsias De Rossa and Deputy Roisin Shorthall," he added.
At the same time, the Minister also revised up his Budget Day spending estimates by £26 million. Overall, the figures mean that the Government ran a deficit of £800 million in the first 11 days of the month, as tax revenue was only £322 million with other receipts totalling £79 million.
On top of that the Government will spend an additional £400 million more than it gets in over the rest of the month, he said.
Mr McCreevy added that £100 million of this will be spent on the high-tech educational fund and a substantial amount will go on the Christmas bonus for social welfare recipients.
The Minister confirmed that the debt at the end of the year will be £29.6 billion, broadly in line with his previous forecast of £29.7 billion.
