Oireachtas Joint and Select Committees

Wednesday, 19 June 2019

Committee on Budgetary Oversight

Fiscal Policy and Budgetary Planning: Discussion

Mr. Fergal O'Brien:

I will comment on two specific issues he raised, one of which was the windfall from corporate tax revenues. We had some discussion with Deputy Boyd Barrett on that. The other issue is the broader view on apprenticeships. We are very clear on the corporate tax surprise. I will repeat the figures involved. It is €14.3 billion in four years, €11.5 billion of which has gone into Supplementary Estimates each year during the past four years. That is the cumulative figure. These are decisions that have been taken collectively during the past four years. They have not been good decisions. They are putting real risks on our fiscal stability. The excessive corporate tax reliance to fund day-to-day spending gives us a greater risk of a significant fiscal crisis than our reliance on stamp duty did more than a decade ago. That is the risk we see in the economy. We must make a transition away from that to a new enterprise based model with much greater support for the indigenous sector, small and medium enterprises, SMEs, and entrepreneurship, but we must invest in the building blocks. We are not hitting our marks in innovation. We are not delivering the public capital infrastructure at the pace we need to be delivering it. We are not supporting our education system. The Deputy spoke at length about apprenticeships. We are completely neglecting-----