Non-commercial bodies under threat

STATE AGENCIES:SOME OF the State's 230 non-commercial agencies could face the axe under the Government's plans to cut spending.

The Government is targeting State agencies, boards and other public bodies in its efforts to cut spending next year by €1 billion.

Minister for Finance Brian Lenihan said yesterday that the review of these bodies, which employ 16,000 people, will involve activities, staffing and costs, including the scope for rationalisation, shared services and other economy measures.

"This will include proposals for the amalgamation and rationalisation of agencies where this is appropriate," he said.

A Department of Finance spokesman acknowledged that the review could effectively result in some agencies being closed if they are amalgamated with other bodies.

According to the department the 230 agencies will cost the taxpayer €6.1 billion this year. This is about 60 per cent more than in 2003, when the bill ran to €3.7 billion.

The organisations involved range from the largest, which is State training agency, Fás, to less well known bodies such as the Medical Bureau of Road Safety.Ninety of these boards have sprung up since 2000.

These include the company law policing agency, Office of the Director of Corporate Enforcement (ODCE) and the Digital Hub Development Agency.

Siptu trade union represents a large number of the workers involved. The union said last night it would not be in a position to respond until the detailed plans are known.