PUBLIC Spending Minister Brendan Howlin is backing down on his threat to cut some of the €1.5bn worth of allowances paid to public servants as the Coalition squabbles over health cuts.
The development comes as tensions simmered within the Coalition over Health Minister Dr James Reilly‘s €130m worth of health service cuts.
But there is not expected to be any climbdown on the package of health cuts, including reductions in home help and elderly care, despite the protests of Labour Party backbenchers.
The cuts will be discussed by ministers at the Cabinet’s first meeting after the summer break today.
Dr Reilly will still face a motion of no confidence when the Dail returns.
Mr Howlin has climbed down substantially on cuts to allowances, some of which he admits are “historic”.