Mr. Robert Watt:

We accept all of the recommendations. We were interested in having the IMF stand back to examine our approach to budgeting and financial management. Generally it is very positive about our financial procedures and approach to budgeting. It made a series of recommendations which will bring it to the next level, the level of the best countries in the IMF. We need to improve in a number of areas. We are currently looking at fiscal risks, fiscal forecasting, accrual accounting and preparation of balance sheets. The figure I announced today in respect of future liabilities is an example of that work. We can publish the recommendations and set out our current position in respect of a number of them. However, its key recommendations on accruals and the format of accounts will have to dovetail with the EU's harmonised accounting regulations, which are not yet ready. We do not want to commit to a particular approach on foot of the IMF assessment only to find that the EU is taking a different approach if it means we have to reset the systems. Part of the work will therefore have to wait until we can see how it can be dovetailed between the two systems.

One change we introduced which has not received much attention relates to the quarterly Exchequer statements, the most recent of which was issued yesterday. We now present information on a gross revenue and expenditure basis, in addition to the traditional Exchequer statement. The Chair will recall that we were criticised in the past for presenting data purely on a net basis because it does not facilitate getting a good handle on, for example, gross expenditure compared to PRSI receipts. Our new format outlining gross revenue and spending is a clearer approach and it takes on board one of the IMF's recommendations.