David Cullinane (Waterford, Sinn Fein)
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I would prefer to converse over and back with Professor Clinch. It is the way I operate because I find it easier. I will first deal with some of the five key areas Professor Clinch has highlighted. He states in the first one that we need to ensure our fiscal position remains sustainable, which we would obviously all agree with. He then goes on to say we should avoid any narrowing of the tax base. The first thing we have to look at and acknowledge is that there is a carry-over from this year in terms of full-year effects of budget 2017. I understand it is about €500 million, which will narrow what is known as the fiscal space. To increase the fiscal space, our only options are to increase revenue or cut spending. When Professor Clinch says we should avoid any narrowing of the tax base, can he be more specific about what taxes he is referring to, given that in the last budget there was a cut to the universal social charge and a commitment to cut it even further over the next number of years? On the shrinking fiscal space and the demands Professor Clinch has identified in housing and capital investment and so on, how will we meet those demands? That is my first question.