MINISTER FOR Finance Brian Lenihan has called for a public service redundancy programme as part of the strategy to deal with the economic downturn.
He told the Dáil that the Taoiseach had reiterated the Government's commitment to public sector reform, and a taskforce would report shortly on the implementation of an OECD report on the subject.
"There will be a redundancy programme for administrative staff in the HSE, and I would like to see such a programme applied in the wider public service as well," said Mr Lenihan.
"The Government is determined to secure maximum value for money in our public services."
The Minister was speaking during a debate on a Fine Gael private members' motion critical of the Government's handling of the economy. The House will vote on the motion today.
Mr Lenihan said the pick-up in Irish inflation over the past year or so had been driven primarily by the global rise in food and oil prices.
In Ireland increases in interest rates had also had a direct impact on inflation.
His department, he said, expected to see an easing in the average rate of inflation in the latter part of this year and into next.
"Most commentators share this view. In addition to a moderation in commodity prices, the large increases in food and oil that occurred towards the end of last year will fall out of the annual comparison.
"The pass-through of the strong euro will also contribute to an easing in inflation, as will more modest domestic demand."
Fine Gael finance spokesman Richard Bruton accused the Government of failing to deal with the economic downturn in time.
"What has happened? Where is the strategy? All we have had from the Government is that it has upgraded the storm to Storm Four.
"We all know that. People who are losing their jobs know that. People who are struggling to pay for their house know that. People who are folding their businesses know that."
He said this should be contrasted with what had happened when the Spanish government was faced with a similar situation.
"They did not go on holidays and put up a 'do not disturb' sign . . . I'm too busy."
Spain's prime minister had called back his ministers from holidays, and told them they should be at their desks, with their computers powered up, and plan what was necessary to get through the recession.
Commentators now believed that Spain would get through the recession, Mr Bruton added.
Olivia Mitchell (FG, Dublin South) said it was not just that the Government had done nothing to deal with the financial and economic crisis. Their attempts to look like they were responding merely reinforced the view that the Government was totally out of touch.
"Having emerged briefly in the summer to tell us they would do something in October, they returned just in time to ensure we all got a pay rise.
"This coincided nicely with the biggest ever monthly rise in unemployment."
Michael Ring (FG, Mayo) said there should have been a special Cabinet meeting in August to discuss the economy.
Labour finance spokeswoman Joan Burton claimed that moving forward the budget to October was a cynical attempt at media manipulation.
She warned that if the Government did not get real about the economy there was a danger that the autumn Dáil session would be a bridge between the Government's summer slumber and a winter of discontent.
