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The Special Group on Public Service Numbers and Expenditure Programmes was an advisory committee established by the
Irish government The Government of Ireland () is the executive authority of Ireland, headed by the , the head of government. The government – also known as the cabinet – is composed of ministers, each of whom must be a member of the , which consists of ...
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 Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance p ...
.


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 The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
and a construction sector collapse and a fall in bank lending led to the
Post-2008 Irish economic downturn The post-2008 Irish economic downturn in the Republic of Ireland, coincided with a Post-2008 Irish banking crisis, series of banking scandals, followed the 1990s and 2000s Celtic Tiger period of rapid real economic growth fuelled by foreign dire ...
. Tax revenue from
value-added tax A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared wi ...
(a form of
sales tax A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...
),
stamp duty Stamp duty is a tax that is levied on single property purchases or documents (including, historically, the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions). Historically, a ...
and
capital gains tax A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property. In South Africa, capital g ...
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 University College Dublin (), commonly referred to as UCD, is a public research university in Dublin, Ireland, and a collegiate university, member institution of the National University of Ireland. With 38,417 students, it is Ireland's largest ...
* 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 State Street Corporation is an American global financial services and bank holding company headquartered at One Congress Street in Boston with operations worldwide. The company is named after State Street in Boston, which was known as the "Gr ...
(Ireland) * Mary Walsh, former partner,
PriceWaterhouseCoopers PricewaterhouseCoopers, also known as PwC, is a multinational professional services network based in London, United Kingdom. It is the second-largest professional services network in the world and is one of the Big Four accounting firms, alon ...
(Ireland) * Pat McLaughlin, business consultant and former Deputy chief executive of the
Health Service Executive The Health Service Executive (HSE) () is the publicly funded healthcare system in Ireland, responsible for the provision of health and personal social services. It came into operation on 1 January 2005. The current director-general is Berna ...


Brief

The
Taoiseach The Taoiseach (, ) is the head of government or prime minister of Republic of Ireland, Ireland. The office is appointed by the President of Ireland upon nomination by Dáil Éireann (the lower house of the Oireachtas, Ireland's national legisl ...
Brian Cowen Brian Bernard Cowen (born 10 January 1960) is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011. Cowen served as a TD for the constituency of Laois–Offaly from 1984 to 2011 and served in several ...
, 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. 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:


See also

* Public service of the Republic of Ireland * State-sponsored bodies of Ireland *
Economy of the Republic of Ireland An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with ...


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



Transforming Public Services programme, Department of the Taoiseach {{DEFAULTSORT:Mccarthy Report Post-2008 Irish economic downturn 2000s in Ireland Brian Cowen Economy of the Republic of Ireland Real estate bubbles of the 2000s