Dublin seeks North/South cash cut

Irish Finance Minister Brian Lenihan faces a huge defecit

The Irish government is looking at ways to cut the amount it spends on North/South bodies, according to the group which examined spending in the state.

The public spending review, known as "Bord Snip", said the question of savings is being addressed by finance ministers on both side of the border.

There are six North/South bodies dealing with matters such as trade, language and waterways.

Bord Snip has recommended a cut of 5.3bn euros in public spending.

The only specific saving proposal with a cross border dimension is a reduction of 12m euros in the Tourism Marketing Fund.

The fund is partially administered by Tourism Ireland, a cross-border body.

"Bord Snip" said the proposal will need to be discussed with the Northern Ireland Department of Enterprise, through the North-South Ministerial Council.

It also concluded that another cross-border body InterTrade Ireland could, in principle, contribute an efficiency gain.

However, it said that matter is already being considered "under the efficiency savings proposal put forward by the Minister for Finance and the Minister for Finance and Personnel and should be discussed at North-South Ministerial Council level."

"Bord Snip", officially called the Special Group on Public Service Numbers and Expenditure Programmes, was set up by the Irish government to suggest ways to cut the country's ballooning government deficit.

The Republic of Ireland's public finances have been devastated as a result of the banking crisis and the recession.

Even before Thursday's report the Irish government had cut back on some of its spending in Northern Ireland such as its funding of the autism centre at Middleton in County Armagh.

But earlier this month the Taoiseach, Brian Cowen, in the presence of Peter Robinson and Martin McGuinness committed Dublin to continue to fund its share of the Aughnacloy to Londonderry and Belfast to Larne dual carriageways.

A spokesperson for the Department of Finance and Personnel said: "In light of the 3% efficiency savings target agreed by the Executive in respect of NI Departments the Finance Minister is considering is whether the same target should also apply to North-South Bodies over the period 2009-11 with the Republic of Ireland Finance Minister and Executive colleagues."