09/07/2008

Cowen Says Economy In 'Temporary Period Of Challenge'

Brian Cowen has described the slowing Irish economy as a "period of challenge" during a Daíl meeting on Wednesday morning.

The sitting was called to discus Tuesday's announcement that almost €500 million was to be cut from government spending.

Focusing on the economic downturn and the national development plan the Taoiseach said that despite the negative forecasts, the Irish economy was better equipped to deal with the slowdown than in the 1980s, adding the "unprecedented" capital investment would be essential to maintaining growth in the future.

Among the cutbacks, the Taoiseach said €50 million would be saved through measures identified in an earlier review of Government Departments; €21 million from savings on advertising, PR and consultancy expenditure; and €10 million from payroll savings.

The remaining €360 million will come from savings on non front-line programme expenditure,

However, opposition parties have claimed the spending cuts have left hundreds of thousands of families all over Ireland are now worried about their livelihoods, the value of their homes and pensions.

Speaking after the meeting, Fine Gael leader Enda Kenney said he could not trust a government that within "just two years, turned a €2 billion surplus into at least a €8 billion deficit, the biggest deterioration in the Irish public finances in the history of the State."

(DW)

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