Professor John McHale:

We estimate, using an alternative scenario for Government expenditure that takes account of what we consider to be a realistic provision for these demographic pressures and essentially indexes the budget, that the bulk of the available fiscal space would be used up if such provision were made. The Government can decide to reduce Government spending, in which case those pressures would not be fully accommodated. That would create space to do other things, such as other expenditure initiatives or tax cuts. Our point is not really to advise the Government or the Oireachtas on what the medium-term plans should be. Our point is that regardless of the plans that are drawn up, they should be based on realistic projections that recognise the underlying spending pressures.