Tuesday, September 18 16:40:23
The Minister for Public Expenditure and Reform, Brendan Howlin, today said that targets for savings from allowances and premium payments will not be met.
He said 1,100 allowances had been notified to his department and over 800 business cases were made for the retention of the payments.
Minister Howlin accepted that given the size of the review that the savings targets would not be met.
"This will not impact however, on the achievement of the pay bill budget for the year which will be fully realised," he said.
But the Minister announced some changes to the allowance regime. Some payments will not be made to new beneficiaries. The annual cost of paying these is in the region of E475m.
Allowances worth E245m will be modified and allowances paid to officials to travel outside the country will be abolished for new and existing staff.
Minister Howlin said the public service is expected to be 292,000 by the end of this year a reduction which is 2,000 ahead of target.