Oireachtas Joint and Select Committees

Wednesday, 17 October 2012

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

2013 Allocations for Public Expenditure - Finance Vote Group: Discussion with Minister for Finance

2:35 pm

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael) | Oireachtas source

I wish to complete my answer to the Deputy's question on arrears. The second thing I would envisage is if the case-by-case attempts to solve people's problems are not successful, then the voluntary arrangement provisions of the Personal Insolvency Bill would be the next range of intervention. In a very small minority of cases the option of bankruptcy exists because that is also provided for in the Personal Insolvency Bill. So there is a hierarchy of interventions. In an orderly society where the laws apply properly and the banks are active, that is the way I would see it working out. The forecasts will be reviewed, as they always are, at the end of this month. It is too early to say whether they will be altered. We are not going to forecast the forecast.

The Deputy asked about the position on the budget. There is ongoing work on the budget. I am trying to figure out how I will collect approximately €1 billion in extra taxes this year. The Deputy knows the basic arithmetic. The general adjustment is €3.5 billion, of which approximately €1.25 billion is tax. Of the €1.25 billion, approximately €290 million is a carry forward from this year. While this is subject to small variations as we get nearer the day, the net position on the tax side is approximately €950 million to our €960 million - slightly less than €1 billion. On the expenditure side there is €2.25 billion and there is some carryover. There is some of it and capital reductions and I am sure the Minister, Deputy Howlin, will give the exact figure later this afternoon if the Deputy asks the question. On my side of the house I am figuring out the best and fairest way of doing that much on the tax side that is pro-enterprise, pro-growth and pro-jobs. On his side of the House, the Minister, Deputy Howlin, will shortly be participating in bilateral meetings with individual Departments to get the necessary adjustments on expenditure to give him what he requires.

That work is an ongoing process.

In respect of Government intervention, so far we have taken the memorandum to Government and it has agreed the targets, but we have not taken particular single issue memoranda to Government, with the exception of the property tax in which respect of which I have outlined the decisions to members. A property tax will be introduced in this budget. The Revenue Commissioners will be assigned the task of collecting it and the probable date of commencement is 1 July, although that might be reviewed. At the moment, the plan is for it to date from 1 July. The detail of the property tax has not yet been decided.

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