Oireachtas Joint and Select Committees

Wednesday, 31 January 2018

Committee on Budgetary Oversight

Proposal to Establish a Rainy Day Fund: Minister for Finance

1:30 pm

Photo of Lisa ChambersLisa Chambers (Mayo, Fianna Fail) | Oireachtas source

If we get one-off tax returns that are unexpected, additional money could go to the fund and it would be a very prudent and wise approach to take. The question can be asked of what happens when we reach the desirable target. There will always be a necessity to have the ability to withdraw money from the economy if needs be to prevent overheating. That would go beyond the desired target.

No matter what we do, there will always be recession and a return to growth. It is a cycle every economy goes through and we are no different from anywhere else. There should be further investigations around the opportunity cost of this and when will be the review. I appreciate the point made by the Minister around money messages being confined to the Government and Departments. There needs to be some element of parliamentary control. This could relate to changing the criteria of the fund down the line. Although we will make the decisions now with the best available evidence, there must be an ability for a future Dáil to change the criteria if evidence or information changes. We should be open to that as well. I thank the Minister for his responses and I welcome the interaction.

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