Mr. Seamus Coffey:

I am not sure I grasp what is meant by a catch-up fund. When it comes to the spending areas and the priorities that the Deputy has identified then our view is that sound fiscal policy in identifying and responding to those priorities are not an either-or situation but can be achieved at the same time. For example, we have outlined that last year Government spending rose by €5 billion. This year, Government spending was planned to increase by something approaching €5 billion. Maybe there will be slippage and I could see that figure increase. There are significant amounts of additional spending being undertaken. If they are not going in areas that the Deputy has identified as priorities then maybe the choice should be among the reallocation of the additional expenditure of €5 billion per annum. If then one wants to go beyond that, one does not necessarily need a catch-up fund. One just needs to find additional and sustainable revenue sources that will fund spending increases beyond those currently pencilled in. The plans at present see a spending growth of in and around €5 billion per annum for each of the last two years. Therefore, I do not see what additional catch-up fund is needed if that is being achieved. If additional priorities are identified then either reallocate funding from within that or identify additional but sustainable revenue sources. One issue that the fiscal council would like to get across is that those who are in favour of an increased Government provision of services, and goods and capital spending across the economy should perhaps be more in favour of what we are suggesting because when a downturn hits, if it was to be quite adverse and led to some of the trade-offs that we have mentioned here, then those who will be affected, by definition, are those who are the most vulnerable.