Oireachtas Joint and Select Committees

Wednesday, 6 December 2017

Committee on Budgetary Oversight

Fiscal Assessment Report: Irish Fiscal Advisory Council

2:00 pm

Mr. Seamus Coffey:

The issues that Deputy Boyd Barrett refers to have been identified by the Department of Housing, Planning and Local Government, and the Department is moving to address them. One issue we have examined is the nature of the consolidation the country went through where we had an excessive budget deficit that had to be brought under control. The area that suffered the most was public capital spending. There were cuts of almost 60% to the spending levels seen in 2007 and 2008 in contrast with cuts of 6% or 7% on primary spending. The largest impact was on capital spending. It is not a surprise then that when we get the public finances into a better position and have the opportunity to increase spending, public capital spending is ramped up. It may not be happening as fast as the Deputy wishes it to happen, but there is no doubt that it is happening and it is going to happen.