Ministers to hear ‘control spending’ mantra amid economic turbulence

Ministers will be warned today that tighter spending controls are required in their departments to stick within agreed budgets at a time of growing international threats to the Irish economy . Updated forecasts due to be published today are expected to show that the public finances remain on track for a healthy surplus this year and that even if the world economy slows, the Irish economy should continue to grow. However, with signs of inflation already beginning to set in and the potential for high oil prices continuing because of the conflict in the Gulf , Ministers will be urged to control and eliminate potential overspending. Wheelchair-user Susan Power stopped working when her multiple sclerosis made it impossible. Her husband John gave up work to care for her. Minister for Public Expenditure Jack Chambers is expected to tell colleagues inflation will constrain what resources can be made available later this year, particularly if high energy costs continue. Chambers’s Department of Public Expenditure is already seeking to pull back an expected overspend of some €600 million in the Department of Education. Planned spending increases , including on programme for government commitments, will be endangered if Government departments cannot keep within agreed budgets, Chambers will warn. Minister for Finance Simon Harris has said his department, along with Chambers’s, will publish forecasts for different situations. These include continuation of the Middle East war and associated pressure on oil prices. Yesterday, Harris raised the prospect of the return of energy supports in the autumn if the war continues. Asked if he would rule out a return of energy supports , Harris replied: “No, it would be foolish to rule anything out, quite frankly ... We’ve got to get the balance right – the balance between trying to help people in the here and now, because it’s tough for people ... but we’ve also got to make sure we have economic firepower to respond in the winter to deliver a good budget, a budget that can advance commitments in the programme for government but also a budget that can help people if this crisis is continuing.” He added: “We made a big intervention last week, but we also need to make sure we keep that powder dry for what could be a difficult winter if this conflict is ongoing.” Another Fianna Fáil heave that wasn’t Listen | 45:55 Taoiseach Micheál Martin stressed that the Government is conscious of “ fiscal sustainability ” in its response to the fuel crisis. Defending a recent package of measures for the transport and agriculture sectors, he said it was “essential” that the Coalition enabled food production, adding that modern-day trade was dependent on hauliers. “We are conscious of fiscal sustainability and the need to make sure that whatever we do is fiscally sustainable over the medium term,” he said in Dublin on Monday. Harris said that today’s forecasts would mean that “even in the various scenarios, we will be able to plan for a budget in October that ... can keep our economy secure and safe.” He also reiterated that he expected to see income tax cuts in the budget. “There are clear commitments around income tax and I’m determined we make progress on those ... I’d like to see progress on that in each of the four budgets the Government will deliver.”