Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for his questions. The only commitment I have given is that if information on the likely effects of a disorderly Brexit on our economy becomes available to me, I will make this information available in advance of when I normally would, that is, in the stability programme update. At no point in this meeting have I said that there would be a need for a new budget this year. My spending and tax plans for this year will be kept in place. As I said to Deputy Lisa Chambers, if we have to deal with new risks that develop this year concerning our response to a disorderly Brexit, I will work on those within the Government. If we face an exceptionally serious shock, the key change will arise from the automatic stabilisers in our budget. It will have an effect on where we are with regard to the challenge of balancing our books in 2019. As that information becomes available to me, I will update the House on it. The only thing I will say in that context is that our budgetary performance for 2018 is better than I have indicated to date or than I indicated on budget day. I have acknowledged that much of that was driven by the increase in corporation tax in the fourth quarter and some of the corporation tax raised was not spent. That higher level of corporation tax has not been built into our economic figures for this year.

Regarding what the Irish Fiscal Advisory Council, IFAC, has said about this budget, as I said, I take what the IFAC says seriously. I am taking it on board. The IFAC raised issues around budgets in other years. Let us acknowledge that. Clearly it has raised this criticism to a higher level in its recent commentary. Whether it is a hurl or whatever, I will take whatever it has said on board and look at how it can be implemented in 2019.

In regard to whether our group has met to manage health expenditure, I note that my colleagues in the Department of Public Expenditure and Reform and I have met twice on this topic in January. I have engaged with the Department of Health on it. We never anticipated sitting down in the way I have outlined until we have at least six to eight weeks' expenditure available to us. It is only then that we will have a sense of any particular trends developing in any part of our health service. We will be doing that.

In answer to what the Deputy has said about the budget, there were forecasts and expectations that every single budget I have been involved in would be an election budget. That election has still not materialised. The Government of which I am a member and the main Opposition party will continue to work together throughout 2019 to deal with the big challenge that we have.