Oireachtas Joint and Select Committees

Thursday, 20 July 2017

Committee on Budgetary Oversight

Summer Economic Statement: Discussion.

10:15 am

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will provide that information. I want to make a point about sensible budgeting. If we had done something when we were putting together the budget which indicated that the deliberations on water charges would have a particular outcome, we would have been accused of predetermining the work being done by the Oireachtas. I am now responding to the decision that was made by the Oireachtas in respect of water charging. The Oireachtas has the ability to deal with each matter in isolation. I mention that fact as a way of explaining how our Parliament works and not as a criticism. As Minister for Public Expenditure and Reform, I have to deal with these matters in the aggregate. I appear before this committee at other points. For example, I have dealt with questions relating to investment and other matters the committee has an interest in.

My core message here today is that I took a different view from the view of the Oireachtas, namely, that water charging gave us the best option of delivering a separate revenue stream to allow us to fund infrastructure and water investment, and I did not win that argument. I accept that. But when the Oireachtas made a decision, in which we participated, to say we want this then dealt with out of general Government expenditure and general Government revenue, as I said before that decision was made - I will say it again now - that then has consequences. It has consequences on what we have to do elsewhere in Departments. To reiterate, what I will say to Departments this year is that they should stick with the plans that have been agreed. What makes the refund particular to this year is that it is a one-off cost. If we look at other decisions we will be dealing with there will be a consequence from the Oireachtas decision on water charging. They will be continuous. They will be repeated year after year but this is different.

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