Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

This goes to the core of the section which, as the Minister said, will stop the craziness. Up to 2008, before the economic collapse, the State was in compliance with the rules enshrined in domestic legislation. The Minister has a valid point in questioning whether there was an actual structural surplus at the time, given the volume of transactional taxes. The figures were accepted by the European Union; they were not questioned. It is a false premise to argue that this section which deals with the two basic rules of the austerity treaty - the debt rule and the deficit rule - would have prevented the collapse. It would not have done so. Up to 2008 we were being cheered on by the European Union because we had surpluses. The Minister has made a valid point about the structural surplus, which was not actually a surplus and should have been calculated differently. During the treaty debate the question was asked many times as to how one could define a structural surplus or deficit. That is what we are seeking to include in the Bill in order that we reach a structural deficit target of 0.5%. Who will define the model to be used in calculating the structural deficit? Will it be the Department of Finance's or the European model that will be applied? Will the Minister make public the model he will use to calculate the structural deficit or surplus in the future?