Oireachtas Joint and Select Committees

Tuesday, 6 September 2016

Committee on Budgetary Oversight

Economic and Fiscal Position: Nevin Economic Research Institute

1:00 pm

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein) | Oireachtas source

My second question was related to this year’s budget which we are focusing on as well. Dr. McDonnell dealt with some of the issues in his presentation.

He argues first that we should not phase out or abolish the universal social charge, USC. Will Dr. McDonnell expand on the reasons for advocating that position? Leaving aside the debate on USC, would he favour discretionary measures, as in revenue raising or public spending measures to supplement the fiscal space that is there this year? If he were to, what type of measures would he advocate? How credible are the Government projections for capital spend this year - €60 million of fiscal space, €240 million in investment - given the very low levels of investment we have? Would Dr. McDonnell advocate greater levels of capital investment and, if so, in what areas? We know the obvious pressure points: housing, health and education. We have seen the Cassells report and know about the housing crisis. Aside from and with those, what other areas of investment would Dr. McDonnell advocate and what levels of increased capital investment would he advocate above the €240 million increased investment made available this year? Given that we can smooth as well, it seems a very small figure.

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