Oireachtas Joint and Select Committees

Thursday, 8 February 2018

Joint Oireachtas Committee on Housing, Planning and Local Government

Reclassification of Approved Housing Bodies: Discussion

9:30 am

Mr. John McCarthy:

I will try to answer on the fiscal rules and the fiscal space. There are two rules. One is the so-called expenditure benchmark, where spending should move in line with the long run trend growth rate of the economy. The inclusion of AHBs within the general Government sector does not affect that rule. The reason is that it is the change in expenditure that eats into fiscal space. If there is a situation where the €250 million is already included in the 2017 base, and in 2016 and backwards, if there is another €250 million in 2019 there is no change. It does not eat into the fiscal space.

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