Mr. Sebastian Barnes:

The Deputy is right about the amount that were initially allocated. Basically, it looks like the amount was overestimated. The Government allocated some temporary space in that regard. I do not think we have a very strong view as to whether that money should be used for something else or whatever. In terms of public finances, the big concern is always permanent measures. Most of what we talk about in the context of the budget, welfare increases and pay and pension increases relates to permanent increases that will last forever and that will have a lasting impact on public finances. That is also true for the rising cost of pensions.

Temporary measures have an impact but not a huge one because they are a kind of one-off. We saw that with the pandemic. They obviously contribute a little to demand and the inflationary pressures but again the amounts involved are not huge, so it is a judgment call as to whether that money should be used or how it should be used. It is partly about smoothing the transition. We are all facing the fact that food and energy prices are likely to be permanently higher than they were before. Most people will not have the extra income to deal with that. It is a judgment call as to how much the Government can help people in the short term by giving them some extra money in order that they avoid a very sudden change in their incomes. These measures are very important for people and they are important for the public finances, but I do not think we have a strong view either way.