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

The policy issues raised in these amendments are of a much wider scope than the substance of the Bill. The Deputy has identified some of the issues that any Government would have to consider in preparing a correction plan or any budgetary plan. However, it should be noted that we are talking about a plan and not the actual detailed legislative budgetary proposals that will have to be brought before the Oireachtas in the normal manner. A key purpose of the Fiscal Responsibility Bill and the stability treaty is to correct budget imbalances where we have deviated from converging towards our medium-term budgetary objectives or the adjustment pact towards it or failed to comply with the debt rule. Section 6 of the Bill was drafted on the basis of the common principles as required by the treaty.

While the Government, and I am sure future Governments, will always seek to promote economic growth, job creation and the delivery of high quality public services, it is highly likely the deployment of a correction plan could result in unpalatable choices which may not be in compliance with the suggested amendments, at least in the short term. Sustainable public finances are a key element of sustainable economic growth. Giving priority to economic growth, job creation and delivery could prove to be an obstacle or a limitation on a Government's choice of actions which are needed to ensure sustainable public finances. In working to ensure the sustainability of public finances any Government would have to have all possible levers of policy available to it. Additionally, each budget day the Government publishes illustrative cases showing the effect of major changes in revenue and certain social welfare payments on various categories of married, civil partners and single income earners.

With regard to requiring Oireachtas approval before adopting the plan, I note amendments which could result in the contravention of our treaty obligations cannot be accepted. The stability treaty requires the triggering of a correction mechanism if there is a significant deviation from the medium-term objective or the adjustment path towards it. Furthermore, non-compliance with budgetary rules would contravene the stability treaty.