Saturday, October 18, 2008

When It's Time To Cut The Budget

Income was falling well behind outflow, and Brian Lenihan had a difficult job ahead of him. The Minister for Finance had to draw up a budget that would give the Irish people the biggest bang for their euro, but he had to cut somewhere.

Scale back on school class size, raise the tax rate by 1% across the board, patch here, patch there, and the ship of State would stop sinking. Next, it was time to throw overboard that which was excess baggage and dead weight.

Nothing's more expensive than health care, especially for the elderly who are no longer healthy. Mr. Lenihan realized that some of those unhealthy old people had more than enough money to pay for their own health coverage. They didn't need taxpayer-funded medical cards, not when they were capable of meeting the cost themselves. Over the side they went.

Fianna Fail backbenchers and Green Party colleagues revolted.

Take away a free offer from those who can well afford to pay? Those same people vote, and they don't much like being made to pay for what was once free. It's all for one and one for all, and they won't stand for means testing.

The bickering and negotiating continues, as An Taoiseach Brian Cowen hunts for the middle ground that will please everyone. The fact remains, the government can no longer afford all the social benefits that came about thanks to the Celtic Tiger. With recession looming, the practical solution is to go with the free markets, and please understand that we can't pay for your doctor's bills when you've got the money in the bank.

When everything has been given, it's next to impossible to take it away. If old folks aren't subjected to means testing for medical cards, someone else will have to sacrifice. The money simply isn't there.

Any physician could tell you that you can't squeeze blood out of a turnip.

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