Oireachtas Joint and Select Committees

Tuesday, 13 December 2016

Committee on Budgetary Oversight

Fiscal Assessment Report: Irish Fiscal Advisory Council

5:00 pm

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

I appreciate that. The starting point of any discussion needs to be where we would be standing still this time next year and then deciding from there what needs to be done in terms of what is available. While the Government says there will be €530 million in fiscal space, the council has argued it is miscounting and there is a discrepancy of approximately €600 million, which means there will be no fiscal space. If we want to just stand still this time next year, it will be negative. There are pressures in the economy without the Government having to find another €59 million for water charges when they are abolished or €40 million for gardaí or whatever comes out of a wage agreement with the public sector or the fact we have a homelessness and housing crisis. Professor McHale argued for prudent fiscal management. How are we supposed to address any of those challenges if no fiscal space is available to the Government this time next year?

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