Professor John McHale:

We do have to stick to our mandate. Depending on what we say, if we deviate and start saying things about particular taxes or spending, then whoever disagrees with that position would come down very heavy on us claiming we were not following our mandate.

For instance, one aspect of our mandate is that we assess the budgetary forecasts. In assessing them, one of the factors we take into account is the kind of underlying spending pressures, including the price related pressures to which Mr. Michael Tutty referred. One of the messages we are giving, which I hope is not coded in any way, is that in making plans for tax cuts, there is a need to recognise that these spending pressures are there and to recognise the amount of fiscal space. There are choices to be made. Some may not be continued or inflation may not be kept up with fully for benefits. These are political choices. At least there is a recognition before commitments are made that these pressures will use up much fiscal space and that that space may not turn out to be there if there is a desire to maintain the existing level of services and benefits. That comes in under our mandate but we have to be careful about being specific about particular types of taxes and spending.