Recovery not possible if 'every single spending cut' opposed

THE ECONOMY will never recover if “every single spending cut and every single reform” in the public sector is resisted, Tánaiste Eamon Gilmore has said .

He has also urged people to desist from special pleading when future cuts were being introduced.

Speaking at a Labour Youth event in Kilkenny, Mr Gilmore said that as the leader of the party he viewed a well resourced public sector as an “enabler” of the economy rather than a drain on it.

However, good health, education and other services would need to be achieved in the context of smaller budgets as these allocations would decline further in the years ahead.

Every improvement to a public service did not require more resources.

“And no one can argue that all public spending is currently achieving all of its objectives,” he said.

“Further reductions in public spending are not something I, or anyone in the Labour Party, takes on lightly. Public services make a significant difference in people’s day to day lives. I cannot say that the decisions we have to make will be easy.”

It was incumbent on everyone in society to tackle the large budget deficit honestly, fairly and without special pleading, Mr Gilmore added.

This applied to citizens, politicians and public servants.

“We do have choices to make, as a nation, about what our priorities are. But we do not have a choice about facing up to the gap between what we spend as a country and what we take in.”

Minister for Public Expenditure and Reform Brendan Howlin was already leading the way with his recent measures to control high-level pay in the public service and the semi-State companies.

A leaner and more efficient public sphere that acted, and was seen to act, in the interests of the people would create a new relationship between the people and the public sector.

The Tánaiste said he believed this potential new relationship was a great prize.

“When our economy recovers, when the hard work and sacrifice pays off then the benefits of that recovery must also be fair.

“That means greater security, growing employment, knowing that mortgage payments can be met.

“But it also means enriching our society, taking the crisis out of getting sick with universal health insurance, making sure that our schools work for every child, forging public services that people trust and support.”