Oireachtas Joint and Select Committees

Wednesday, 13 July 2022

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Summer Economic Statement: Irish Fiscal Advisory Council

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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I will delve into some of the figures now that make up the summer economic statement. We might look at existing levels of services, which the council commented on with regard to its assessment of the SPU and again today. The summer economic statement provided €2.2 billion in respect of maintaining existing levels of services and €800 million in respect of pre-committed increases in capital ceilings. Last year, that figure was approximately €1.6 billion in terms of services for 2022.

Mr. Barnes pointed out that in its report in May, the council noted that the 3% increase that underpins this allocation has changed from the SPU despite higher inflation. Given the fact that we are seeing higher inflation and that the numbers have not changed, from what we have seen, in more than a year, how much of the discretionary money does Mr. Barnes think will be eaten into when we factor in what is happening in terms of inflation? Mr. Barnes also made the point that existing pay agreements are factored into the existing levels of service but not future pay agreements, one of which we know is under consideration. He might give an indication of the impact the offer that was on the table, which has been rejected, would have on the discretionary funding the Minister has available for new policy measures in September were it to be accepted.