Oireachtas Joint and Select Committees

Wednesday, 15 July 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Dermot McCarthy:

Their primary focus, I think, was on the bottom line. In other words, the pace of the adjustment. And there was certainly a view that the initial phase of this multi-annual plan should be as ambitious as possible and there was discussion about figures of €7 billion, €8 billion, €9 billion, as opposed to the €6 billion which was ultimately adopted. On the specific measures, in the course of consultation ... and I think Kevin Cardiff's evidence was correctly specific about this, that the text of the plan wasn't shared with the international institutions, to my knowledge, but there was certainly discussion about issues which might be addressed, some of a general structural kind, obviously the broadening of the tax base as part of the adjustment. They were also, I think, very emphatic about the need for labour market adjustments and, in particular, the reduction in the national minimum wage.