Oireachtas Joint and Select Committees

Thursday, 4 December 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Fiscal Assessment Report - November 2014: Irish Fiscal Advisory Council

3:20 pm

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

I am supposed to be in the Dáil speaking about the Water Services Bill and had better go. The expenditure stuff must be teased out a great deal more. The delegates have flagged this issue on two occasions.

The last point I want to make is that in its next report I encourage the council to go further on the expenditure ceiling. The report looks at how we have broken it this year, even though it does not apply this year, and will be close to edge in 2016. Combined, we are very close in terms of the two year rule. The demographic pressure on expenditure which the council has highlighted in previous reports is not being factored in. The former Minister, Deputy Pat Rabbitee, talked about chaos. If we factor in the demographic pressure, the already announced budgetary cuts in higher income tax rates and the ceiling, we will be in a serious position in budget 2016 unless something moves. In its next report I would like the council to expand on the work it has done to draw the public's attention to this issue.

At what other areas will the council look? It always looks at certain areas in its report, but has it identified the areas at which it will look now? The banks were mentioned, as well as possible share sell-offs, but are there other areas?

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