Kieran O'Donnell (Limerick City, Fine Gael)
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No, I am making a more fundamental point. While policies have to be driven, at some stage they have to be paid for. Either they will be paid for by taxes or borrowings. It is one or the other. We cannot pull magic money out of the air. I am just saying that the surplus corporation tax receipts have provided a new dimension to our economic performance as a country.

I direct the witnesses to table 2.2, which shows the budget summary fiscal forecast. In it, the IFAC projects that the windfall corporation tax will be €9 billion this year, €10 billion next year, €9 billion in 2024 and €9.5 billion in 2025. This brings a new dimension to our receipts. I have a view that I do not like borrowed money. If I can pay for something out of taxes on a once-off basis, the accountant in me prefers that. I do not want to put borrowings on the heads of the taxpayers. Of the windfall corporation tax receipts that are coming in, how much should be put into the National Pensions Reserve Fund or a similar fund each year? I am asking this fundamental question. We can then talk about policy.

I was around when we could not borrow money on the markets. I come from the old school so I would much prefer to use cash flow than borrowings. Corporation tax provided latitude last year. I am not disagreeing on policy, which is a separate issue. What does the IFAC propose as a policy for those windfall corporation tax receipts, which work out at roughly €40 billion over a four-year period? That is a significant amount of money. What percentage should go to the National Pensions Reserve Fund and how should it be used? I suppose that relates to policy.