Oireachtas Joint and Select Committees

Wednesday, 16 January 2019

Committee on Budgetary Oversight

Fiscal Assessment Report: Minister for Public Expenditure and Reform

Photo of Declan BreathnachDeclan Breathnach (Louth, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his attendance. I wish to first focus on the issue of oversight and improving budget scrutiny, which is part of the remit of the committee. The Irish Fiscal Advisory Council, IFAC, criticised the Government's budget 2019 plans as not being credible. According to its chair, Mr. Seamus Coffey, previous budgets stuck to plans but in the most recent budget the Government did not do so, with the budget day package being larger than previously signalled and containing significantly greater within-year spending increases for 2018 with little or no saving elsewhere to offset them. Has the Minister issued a formal response to those concerns? Has the Department studied the concerns raised in the fiscal assessment report? What steps have been taken to address them?

IFAC also raised the issue of the Christmas bonus, pointing out that the budget is not realistic if it does not make provision for the Christmas bonus. The Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, recently commented on this issue. I ask the Minister to consider committing to the Christmas bonus in next year's budget.

Health expenditure overruns have become commonplace. The committee has discussed this issue. What proactive steps are being taken to get to grips with it? Is the Minister fully satisfied by the quality of budget information that his Department receives and uses to monitor expenditure trends in health?

Reference has been made to Brexit. I ask the Minister to comment on the issue of illicit cross-Border trade, which will come to the fore in the case of a no-deal Brexit or otherwise. I have been raising this issue since I was elected to the Dáil. A Grant Thornton report on illicit trade was published some years ago. The Public Health (Alcohol) Act and the proposal of the Minister, Deputy Harris, to introduce minimum unit pricing will have a huge impact on retailers on the Border and beyond. I spoke on this matter today in the Chamber and I ask the Minister to address it further.

It is clear that if we do not get a handle on the issue of carbon taxes there will be a flood of illicit activity. That is already evident with regard to solid fuel. It has been brought to my attention that at the current estimated 10% evasion rate on solid fuel, approximately €12 million in carbon taxes and VAT is being foregone.

Such evasion could be greatly exacerbated by Brexit. I do not advocate any form of border controls. What steps are being taken by the Minister's Department to bring to heel the significant illicit trade in solid fuel and other products?