Oireachtas Joint and Select Committees

Wednesday, 5 December 2018

Committee on Budgetary Oversight

Fiscal Assessment Report November 2018: Irish Fiscal Advisory Council

2:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

What is the possible impact of Brexit? The budget is based on the central scenario of a relatively benign outcome. I mean that a transition period will be followed by a deal with free trade terms. To what extent does Mr. Coffey think the Government should have provided a what-if or sensitivity analysis in terms of the impact in 2019 if all of this goes wrong?

A vote on Brexit is due to take place next week but it does not look positive. We will have to wait and see what happens next. There is a distinct possibility that we could be facing a cliff-edge Brexit. If that happens the basis for the budget will become obsolete overnight. Yet, no analysis or possible scenarios were included in the documentation available on Brexit. I ask the witnesses to make observations on the matter.

The fiscal council is very critical of the within-year changes or growth in expenditure. That is principally accounted for by the Department of Health and is in the region of €700 million. Let us say the Government asks the council what it can do when the HSE runs out of money with just a few months to go. We are all aware of the pressures on the health service such as life-saving operations and essential treatments for people. What would be the fiscal council's argument in response to that? How do we prevent this happening every year?

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