Oireachtas Joint and Select Committees

Thursday, 4 December 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Fiscal Assessment Report - November 2014: Irish Fiscal Advisory Council

2:30 pm

Professor Alan Barrett:

Possibly, but going back to when we were established, I remember we all read extensively at the time about the design of fiscal councils. Essentially, there were two models. One is where one has a body which makes decisions. It is a bit like a monetary authority for the banks when the Government lets an agency decide. Some fiscal councils have very strong powers. We were set up on the basis that we did not actually have any powers and that our purpose was more to influence the debate, exactly the sort of things Professor McHale has talked about. The phrase that was used in some of the literature was “raising the political cost of inappropriate fiscal policy”. It is not the case that we talk directly to the Minister and nobody else. It was always intended, on the basis of the model under which we were set up, that the channels of influence had to be in part through the media, through public debate and public representatives and that the very issues we were talking about would be highlighted more and more so that when the Minister decided to do X, Y or Z, there was a much broader and more robust context in which he was doing it. There is truth on both sides, but I wish to re-emphasise what Professor McHale said-----