Oireachtas Joint and Select Committees

Wednesday, 22 June 2016

Committee on Arrangements for Budgetary Scrutiny

Engagement with Economic and Social Research Institute

10:00 am

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

I agree with Professor Barrett and I also agree with the Department of Finance officials that it is a Government decision to index tax credits or, indeed, social welfare payments. Presentation of data is crucial. Professor John FitzGerald's comments to the banking inquiry were insightful. He said models do not get the answers wrong; it is the individuals who use the models or who do not understand them that get the answers wrong. Giving a model to someone who does not understand it is similar to giving a box of matches to a child. There is an expectation in society that approximately €600 million will be available for current expenditure. Should it not be the case that - while it is ultimately a Government decision - a standstill position would require X amount of this to be absorbed?

We are well familiar with what the ESRI does and we have our ups and downs in respect of some of its analysis. It is interesting that the question that is put sometimes reflects the way the answer is given. Professor Barrett has experience of the Irish Fiscal Advisory Council, the ESRI and the national economic dialogue. If he was to write the report we, as a committee, are tasked with, which is to make recommendations on how a budgetary committee should be established and the establishment of an independent parliamentary costings office, what priority recommendations would he make?

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