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.
The group described a potential €5.3bn of savings, including 17,300 public service job cuts and a 5% cut in social welfare.'Bord Snip' reveals €5.3bn savings plan RTÉ.ie 16 July 2009
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". An Bord Snip is a mix of English and Irish words that can be translated as "The Snip Board". An 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 The 2008 financial crisis and a construction sector collapse and a fall in bank lending led to the Post-2008 Irish economic downturn. 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.
Members of the group Colm McCarthy, economist at University College Dublin Donal McNally, Second Secretary in the Department of Finance Maurice O'Connell, former director of Depfa Bank plc and Governor of the Central Bank and Financial Services Authority of Ireland William Slattery, managing director, State Street Corporation (Ireland) Mary Walsh, former partner, PriceWaterhouseCoopers (Ireland) Pat McLaughlin, business consultant and former Deputy chief executive of the Health Service Executive
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."
The group was charged with identifying cuts in spending and staff numbers, quangos (quasi-autonomous non-governmental organisations) that could be merged or abolished, and ways to get better value for taxpayers' money. The group had scope to examine the terms and conditions, tenure and pension entitlements of new recruits to the public service. The group was charged with identifying expenditure programmes to be cut or stopped, with a view to eliminating the budget deficit by 2011.
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.Written Answers – Departmental Reports Dáil debates, 10 March 2010 In June, Lenihan said that the government had implemented 42 in full and 103 in part, and that the report remained under consideration.Written Answers – Departmental Reports Dáil debates, 7 July 2010 Later that year, various ministers answered Dáil questions outlining the savings made by their departments: Department (office) Minister Date of answer (link to details) Finance (general public service) 30 September 2010 Finance (departmental) 14 October 2010 Finance (Office of Public Works and National Treasury Management Agency) 17 November 2010 Finance (Revenue Commissioners, Valuations Office, public appointments offices, Ombudsman) 25 November 2010 Taoiseach 23 November 2010 Agriculture, Fisheries and Food 14 October 2010 Communications, Energy and Natural Resources 14 October 2010 Community, Equality and Gaeltacht Affairs 5 October 2010 Defence 14 October 2010 Education and Skills 17 November 2010 Enterprise, Trade and Innovation 14 October 2010 Environment, Heritage and Local Government 19 October 2010 Foreign Affairs 14 October 2010 Health and Children 14 October 2010 Justice and Law Reform 14 October 2010 Social Protection 7 December 2010 Tourism, Culture and Sport 24 November 2010 Transport 17 December 2009
See also Public service of the Republic of Ireland State-sponsored bodies of Ireland Economy of the Republic of Ireland
References Report of the Special Group on Public Service Numbers and Expenditure Programmes: Volume 1 (Prn. A9/0987); Volume 2 (Prn. A9/0988)
Notes
External links What is the Special Group on Public Service Numbers and Expenditure Programmes? Transforming Public Services programme, Department of the Taoiseach