Oireachtas Joint and Select Committees

Tuesday, 8 December 2020

Committee on Budgetary Oversight

Post-Budget Analysis: Irish Fiscal Advisory Council

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I apologise for my late arrival. Other issues intervened.

I thank our guests this morning.

We are talking about the impact that Covid is having but we must have a serious talk about the impact of Brexit on our economy. Can the witnesses give particular advice on this double whammy? I have advice that I wish to give as well. I am one of those who spent at least four or five years before the economic crash raising questions in the Houses. On the basis that it was not wise to suggest the country was going into a slide, as it would cause a rush on banks and all financial situations, we resorted to asking questions on whether the economy was keeping good economic fundamentals in mind. The reply I always got was "Yes, it was". That was not the case and was everything and anything but.

In this particular situation, I believe we need to be cautious about how we spend and be much more mindful of what other countries are doing for recovery than we were at any time in the past. Any extra taxation must be weighed against the degree to which that will encourage confidence in our economy, given that we have an open economy, are highly dependent on exports and are a small fish in a very big pool full of many predators. Is it wise to go for an early restoration of balance in spending in preference to retrenchment or austerity at an early stage? I know the answer but I seek reassurance from someone else, if possible.

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