McCarthy Report

Last updated

The Special Group on Public Service Numbers and Expenditure Programmes was an advisory committee established by the Irish government in 2008 to recommend cuts in public spending. It was chaired by economist Colm McCarthy. It published two volumes of findings, commonly known as the McCarthy report, on 16 July 2009.

Contents

The group described a potential €5.3bn of savings, including 17,300 public service job cuts and a 5% cut in social welfare. [1]

Name

The committee, colloquially dubbed "An Bord Snip Nua" by newspaper journalists, was a committee with a similar remit to one established in 1987, known as "An Bord Snip". Bord Snip is a mix of English and Irish words that can be translated as "snip board". Bord Snip Nua means the new Bord Snip. The name is intended to be humorous. Many state agencies in Ireland have the words an bord (meaning "the board") in their title, such as Bord Iascaigh Mhara (the Irish Sea-Fisheries Board); "snip" refers to the cost-cutting remit of the group.

Background

Due to the global financial crisis, a construction sector collapse and a fall in bank lending, an Irish financial crisis began in 2008. Tax revenue from value-added tax (a form of sales tax), stamp duty and capital gains tax fell sharply. An additional income levy on 1% and 2% was introduced to compensate for some of these falls. The government expected a €6 billion budget deficit for the fiscal year 2009.

There were thus calls for the formation of a new board to identify areas for cuts in public expenditure. The Minister for Finance, Brian Lenihan, appointed an expert group to recommend cuts. [2]

Members of the group

Brief

The Taoiseach Brian Cowen, stated that the: "Special Group's examination of all programmes funded through public expenditure will focus on whether scarce financial resources are being deployed to achieve priority policy objectives. The Group will identify options for savings in the context of the Government's fiscal objectives as set out in Budget 2009. It will also ensure that public expenditure is being used to address relevant priority policy objectives in the current fiscal environment." [4]

Implementation

In March 2010, Lenihan said that, of the report's 271 recommendations, the government had decided to implement 32 in full and 89 in part, with projected savings for the year estimated at €1.7b. [5] In June, Lenihan said that the government had implemented 42 in full and 103 in part, and that the report remained under consideration. [6] Later that year, various ministers answered Dáil questions outlining the savings made by their departments:

Department (office)MinisterDate of answer (link to details)
Finance (general public service) Brian Lenihan 30 September 2010
Finance (departmental) Brian Lenihan 14 October 2010
Finance (Office of Public Works and National Treasury Management Agency) Brian Lenihan 17 November 2010
Finance (Revenue Commissioners, Valuations Office, public appointments offices, Ombudsman) Brian Lenihan 25 November 2010
Taoiseach Brian Cowen 23 November 2010
Agriculture, Fisheries and Food Brendan Smith 14 October 2010
Communications, Energy and Natural Resources Eamon Ryan 14 October 2010
Community, Equality and Gaeltacht Affairs Pat Carey 5 October 2010
Defence Tony Killeen 14 October 2010
Education and Skills Mary Coughlan 17 November 2010
Enterprise, Trade and Innovation Batt O'Keeffe 14 October 2010
Environment, Heritage and Local Government John Gormley 19 October 2010
Foreign Affairs Micheál Martin 14 October 2010
Health and Children Mary Harney 14 October 2010
Justice and Law Reform Dermot Ahern 14 October 2010
Social Protection Éamon Ó Cuív 7 December 2010
Tourism, Culture and Sport Mary Hanafin 24 November 2010
Transport Noel Dempsey 17 December 2009

See also

Related Research Articles

<span class="mw-page-title-main">Taoiseach</span> Head of government of Ireland

The Taoiseach is the prime minister and head of government of Ireland. The office is appointed by the president of Ireland upon the nomination of Dáil Éireann and the office-holder must retain the support of a majority in the Dáil to remain in office.

<span class="mw-page-title-main">Charles Haughey</span> 7th Taoiseach from 1979 to 1981; 1982; 1987 to 1992

Charles James Haughey was an Irish Fianna Fáil politician who served as Taoiseach on three occasions – 1979 to 1981, March to December 1982 and 1987 to 1992. He was also Minister for the Gaeltacht from 1987 to 1992, Leader of the Opposition from 1981 to 1982 and 1982 to 1987, Leader of Fianna Fáil from 1979 to 1992, Minister for Social Welfare and for Health from 1977 to 1979, Minister for Finance from 1966 to 1970, Minister for Agriculture from 1964 to 1966, Minister for Justice from 1961 to 1964 and Parliamentary Secretary to the Minister for Justice from 1959 to 1961. He served as a Teachta Dála (TD) from 1957 to 1992.

Mary O'Rourke is an Irish former Fianna Fáil politician who served as Leader of Seanad Éireann and Leader of Fianna Fáil in the Seanad from 2002 to 2007, Deputy Leader of Fianna Fáil from 1994 to 2002, Minister for Public Enterprise from 1997 to 2002, Minister for Health from 1991 to 1992 and Minister for Education from 1987 to 1991. She also served as a Minister of State from 1992 to 1994. She served as a Teachta Dála (TD) from 1982 to 2002 and 2007 to 2011. She served as a Senator for the Cultural and Educational Panel from 1981 to 1982 and from 2002 to 2007, after being Nominated by the Taoiseach.

<span class="mw-page-title-main">Brian Cowen</span> 12th Taoiseach from 2008 to 2011

Brian Bernard Cowen is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011.

<span class="mw-page-title-main">Minister for Finance (Ireland)</span> Irish government cabinet minister

The Minister for Finance is a senior minister in the Government of Ireland. The Minister for Finance leads the Department of Finance and is responsible for all financial and monetary matters of the state; and is considered the second most important member of the Government of Ireland, after the Taoiseach.

<span class="mw-page-title-main">Éamon Ó Cuív</span> Irish Fianna Fáil politician

Éamon Ó Cuív is an Irish Fianna Fáil politician who has been a Teachta Dála (TD) for the Galway West constituency since the 1992 general election. He previously served as Deputy Leader of Fianna Fáil from 2011 to 2012, as Minister for Social Protection from 2010 to 2011, Minister for Community, Rural and Gaeltacht Affairs from 2002 to 2010, and as a Minister of State from 1997 to 2002. He also served as Minister for the Environment, Community and Local Government and Minister for Defence from January to March 2011, appointed to these positions in addition to his own on the resignation of other members of the government.

<span class="mw-page-title-main">Government of Ireland</span> Ministerial cabinet exercising executive authority in the country of the Republic of Ireland

The Government of Ireland is the cabinet that exercises executive authority in Ireland.

The public service of Ireland refers to the entirety of public administration within the state government apparatus. The Irish Department of Public Expenditure and Reform defines the Irish public service as consisting of:

<span class="mw-page-title-main">Department of Finance (Ireland)</span> Irish government department

The Department of Finance is a department of the Government of Ireland. It is led by the Minister for Finance and is assisted by two Minister of State.

<span class="mw-page-title-main">Bertie Ahern</span> 11th Taoiseach from 1997 to 2008

Bartholomew Patrick "Bertie" Ahern is an Irish former Fianna Fáil politician who served as Taoiseach from 1997 to 2008, Leader of Fianna Fáil from 1994 to 2008, Leader of the Opposition from 1994 to 1997, Tánaiste and Minister for Arts, Culture and the Gaeltacht from November 1994 to December 1994, Deputy Leader of Fianna Fáil from 1992 to 1994, Minister for Industry and Commerce in January 1993, Minister for Finance from 1991 to 1994, Minister for Labour from 1987 to 1991, Government Chief Whip and Minister of State at the Department of Defence from March 1982 to December 1982 and Lord Mayor of Dublin from 1986 to 1987. He served as a Teachta Dála (TD) from 1977 to 2011.

<span class="mw-page-title-main">Paschal Donohoe</span> Irish Fine Gael politician

Paschal Donohoe is an Irish Fine Gael politician who has served as Minister for Finance since June 2017 and President of the Eurogroup since July 2020. He has been a Teachta Dála (TD) for the Dublin Central constituency since 2011. He previously served as Minister for Public Expenditure and Reform from 2016 to 2020, Minister for Transport, Tourism and Sport from 2014 to 2016 and Minister of State for European Affairs from 2013 to 2014.

Fianna Fáil was founded on 23 March 1926 when a group of Dáil deputies led by Éamon de Valera split from the original Sinn Féin. This happened because de Valera's motion calling for elected members be allowed to take their seats in the Dáil, if and when the controversial Oath of Allegiance was removed, failed to pass at the Sinn Féin Ard Fheis. The new party adopted its name on 2 April of the same year. From the formation of the first Fianna Fáil government on 9 March 1932 until the 2011 general election, the party was in power for 61 of 79 years. Its longest continuous period in office was 15 years and 11 months. Its single longest period out of office, in that time, has been four years and four months. All eight of its party's leaders have served as Taoiseach. It was the largest party in Dáil Éireann at every general election from the 1932 general election until the 2011 general election, when it suffered the worst defeat of a sitting government in the history of the Irish state.

<span class="mw-page-title-main">2009 Irish budget</span>

The 2009 Irish budget was delivered on 14 October 2008, as the first budget in the tenure of Fianna Fáil's Brian Lenihan as Minister for Finance and the first of Taoiseach Brian Cowen's tenure. It was brought forward from its usual December date due to the global financial crisis. The budget, labelled "the toughest in many years", included a number of controversial measures such as a proposed income levy and the withdrawal of previously promised HPV vaccines for schoolgirls. Other results of the budget included a new income levy being imposed on all workers above a specified threshold and the closure of a number of Irish Army barracks near the border with Northern Ireland.

The Expenditure Review Committee was an advisory committee established by the Irish Government in 1987 to recommend cuts in state spending.

The 2009 Irish emergency budget refers to the delivery of an emergency government budget by the Government of Ireland on 7 April 2009, its second in six months. It was also the second overall budget to be delivered by Fianna Fáil's Brian Lenihan as Minister for Finance. The emergency budget announcement involved significant tax rises and a decrease in public spending. Prior to its unveiling, it was predicted to be the most severe budget in decades, with The Independent suggesting in its aftermath that it was the most severe in the country's history.

<span class="mw-page-title-main">Brian Lenihan Jnr</span> Irish Fianna Fáil politician

Brian Joseph Lenihan was an Irish Fianna Fáil politician who served as Minister for Finance from 2008 to 2011, Deputy Leader of Fianna Fáil from March 2011 to June 2011, Minister for Justice, Equality and Law Reform from 2007 to 2008 and Minister of State for Children from 2002 to 2007. He served as a Teachta Dála (TD) for the Dublin West constituency from 1996 to 2011.

<span class="mw-page-title-main">Seanad Éireann</span> Upper house of the Oireachtas (Irish parliament)

Seanad Éireann is the upper house of the Oireachtas, which also comprises the President of Ireland and Dáil Éireann.

The 2010 Irish Budget refers to the delivery of a government budget by the Government of Ireland on 9 December 2009, its third in fourteen months. It was also the third overall budget to be delivered by Fianna Fáil's Brian Lenihan as Minister for Finance.

<span class="mw-page-title-main">2012 Irish budget</span>

The 2012 Irish budget was the Irish Government budget for the 2012 fiscal year, the first budget of the 29th Government of Ireland. It was presented to Dáil Éireann in two parts on 5–6 December 2011, with the first part delivered by Minister for Public Expenditure and Reform Brendan Howlin, and the second part delivered by Minister for Finance Michael Noonan. The budget contained tax increases, and spending cuts of €3.6bn for 2012.

Colm McCarthy B Comm MA MEcon, is an Irish economist who lectures in the School of Economics in University College Dublin, known for chairing The Special Group on Public Service Numbers and Expenditure Programmes and producing a report to the Irish Government to deal with the Financial crisis in 2009. Similar to the 2009 McCarthy Report, Colm also participated in the 1987 An Bord Snip. A writer on Economics and public finances, McCarthy is regular contributor in the Irish Media discussing economics, and he works as a columnist for the Irish Independent.

References

Notes

  1. ↑ 'Bord Snip' reveals €5.3bn savings plan Archived 9 September 2009 at the Wayback Machine RTÉ.ie 16 July 2009
  2. ↑ "Public service must be reformed". The Irish Times . 27 November 2008. Archived from the original on 17 October 2012. Retrieved 6 February 2009.
  3. ↑ "Members of An Bord Snip are named". Business World. Archived from the original on 6 February 2009. Retrieved 6 February 2009.
  4. ↑ "Taoiseach's Statement on Transforming Public Service". Department of the Taoiseach. 27 November 2008. Archived from the original on 5 February 2009. Retrieved 6 February 2009.
  5. ↑ Written Answers – Departmental Reports Archived 21 July 2011 at the Wayback Machine Dáil debates, 10 March 2010
  6. ↑ Written Answers – Departmental Reports Archived 21 July 2011 at the Wayback Machine Dáil debates, 7 July 2010
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.