Oireachtas Joint and Select Committees

Thursday, 18 October 2012

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Fiscal Responsibility Bill 2012: Committee Stage

3:15 pm

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I do not propose to accept the amendments. The common principles adopted by the European Commission require governments to comply or explain why they are not complying with the assessments set out in subsection (3). Accepting the proposed amendments would result in a requirement for the Government to respond to all assessments and reports produced by the council. The Government does respond to the assessments of the council. Specifically, I have responded to its reports in the stability programme updates and the medium-term fiscal statements. Placing this requirement on a legislative basis would be very difficult.

The assessments arising from the council's general functions under subsection (4) can be wide-ranging and contain a great deal of analysis and a large number of recommendations. Would the Government have to respond to every line of the recommendations and analysis or just a few of the main items? In any event, I and the Government answer to the Oireachtas and the mechanisms available there can be used to elicit further responses to council reports.

The reference to subsection (3) is a reference to the core functions of the fiscal council under the treaty and the assessments in question. The fiscal council determines whether if exceptional circumstance exist or have ceased to exist, and also examines the Government's compliance with section 6 regarding the correction mechanism. The specifics of assessments arise from the provisions of the treaty and are precise requirements. In addition, requests for debates are a matter for the Oireachtas. It is not appropriate to place in legislation a requirement for debates. For these reasons, I do not intend to accept these amendments.

The real response to the recommendations of the fiscal council is not the words used in a particular report but the policy action the Government is prepared to take arising from the recommendations. The policy actions are usually identifiable at budget time when one sees whether the provisions of the recommendations of the fiscal council are being implemented by the Government. That will continue to be the real test of whether the Government takes on board the recommendations of the fiscal council.

Neither of the Deputies is tardy in asking parliamentary questions and, if at any stage, they feel there is not an adequate response to a recommendation from the fiscal council, they should table a question for priority. They should use their usual investigative powers to get the maximum information from the relevant Minister, whether the Minister for Finance or otherwise.

On the question of Dáil debates, the Government is never reluctant to have a debate on a particular issue. If there needs to be a debate on the recommendations of the fiscal council, it can be processed in the normal way through the Whips. In the same way as we will have an economic debate next week, if the Deputies think there is inattention to the recommendations of a fiscal council report, there is no difficult having a debate on it.