Brendan Howlin (Wexford, Labour) | Oireachtas source

The Deputy took a ramble across all the areas for which I am responsible. I will deal with the issues raised on an individual basis.

I will begin by answering the question on where I am going to find further savings. The idea behind my appearance before the committee is for members to provide me with advice on that very issue. In the context of the comprehensive expenditure review, last year we published information on the policy options available. We know what is the framework for 2013 in terms of the expenditure ceilings. The idea is for the various committees to engage in this process in order that we might discover members' views on which policy options should be pursued before we make a determination in that regard. I genuinely hope members will come forward with priorities or suggestions and indicate whether they consider certain of the options to which I refer as being good or bad.

Ultimately we must make the decision and then I will come back to the committee to account for it once I have presented it to the Dáil.

The first issue to which Deputy Fleming referred was the policy basis for decisions. The idea of publishing the comprehensive review of expenditure was to circulate all the policy options, the existing instruments for reducing costs. They are not intended to be exhaustive but there is a wide range. The policy instruments to make the reductions across all areas exist.

In terms of sanctions to Departments, new sanctions are being introduced. We will introduce legislation in that regard. The proposals are still being developed. The idea of a multi-annual budget line is that like countries, one should be building up reserves in better times and spending at other times so that there will be ebbs and flows over a budgeting cycle. Issues arise in terms of demand-led schemes. The ones that are under the most pressure currently are the Department of Social Protection and the Department of Health. I do not wish to range over other Departments because they will be accounting for themselves before their line committees. We must have mechanisms to deal with supplementary expenditure that will arise because one will have schemes and emergencies for which one will not be able to account. We will discuss that in detail when the legislation comes back to the committee.

In terms of macro-expenditure - I did not hear the contribution of the Minister for Finance – I have indicated the breakdown of next year’s €3.5 billion. It will involve a €1.25 billion contribution from the tax side. From my side of the House it is €1.7 billion on the current side with €0.55 billion on the capital side, which is already indicated in the multi-annual capital plan I set out last year. The imperative for us is not the monetary ceiling, it is the deficit target. We are committed to reach a deficit under the troika agreement of 7.5% next year. If it is determined that greater or lesser adjustments will get us to that figure; that will be the focus, unless the Government decides to go beyond that figure. The target is not a volume of money; it is a deficit target which we must reach over time.

The charges for interest are a matter for the Minister for Finance. The interest charge is reflected in the Central Fund. It is non-voted money under the Department of Finance.

The total cost of increments-----