It's amazing how lazy journalists can be. They have all been repeating the government mantra that the €440million of cuts this year are necessary to pay for the additional Social Welfare payments. However, if you examine the finance documentation this is not the case at all. In fact the the Dept of Social and Family Affairs spent €30million LESS by the end of June than had been budgeted for. Yes unemployment claims are away ahead of forecast but it is the Social Insurance Fund (which is in substantial surplus) that is picking up most of the tab rather than the exchequer. And it's not capital spending in the Dept either which at 0.16% of their total budget is negligible. In fact the government spent €200million LESS on total government goods and services by mid-year than they planned for.

In fact the spending pressures are coming from the non-voted expenditure side of the equation, namely: Contribution of the EU budget, Interest and costs of the National Debt and the cost of the Oireachtas. However, from a PR point of view putting the blame on Social Welfare costs is more acceptable than any of the actual reasons. We spent €175million more in payments to the EU, €160million more on Interest and costs on the National Debt and €8million more on Oireachtas costs than mid-year 2007.

The government have been spinning a pack of lies and the journos fell for it hook line and sinker!