Government appoints group to review estimates

The Government is to appoint a special expenditure review group to assess funding submissions from Government departments for funding.

The group is to assist in drawing up next year’s estimates.

The Cabinet today agreed the group be set up to work within the estimates process to achieve departmental targets by assessing submissions for more funding and advising the Government.

The Ministers were not believed to have discussed the current package of spending adjustments at today’s meeting.

The meeting began this morning with the Minister for Finance’s pledge to cut increases in public spending at the top of the agenda.

Mr McCreevy said yesterday that spending on public services will need to be curtailed, calling for a "disciplined approach" to maintain the strength of the Irish economy.

He admitted there were significant pressures on such areas as education, health, transport and public service pay, but insisted he was confident of keeping public spending growth below 14 per cent for 2002.

The Labour Party’s finance spokesman, Mr Brendan Howlin, has demanded full disclosure from the Government of where the cuts will impact.

Among the cost-cutting measures are the announcement yesterday by the Minister for Defence, Mr Smith, that the Army deafness early settlement scheme is to be scrapped in an effort to save up to €5 million annually.