Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I welcome the IFAC representatives to the committee. I appreciate their attendance and their report, which is invaluable to our considerations. The national 5% spending rule was referenced, but this is not a national rule. It is a rule of three political parties, which does not exist in law, that they have never ever met. I would like it to be a national rule enshrined in law but it is not. The IFAC has a very important job and carries out that function, but I would appreciate it if this rule were not presented as something other than a Government rule. It has never come before the Parliament, it has never been voted upon, and it is not supported by Sinn Féin or, I argue, some of the other political parties as well. We cannot call it a national rule. That is a very important point. Until it becomes enshrined in law or something, it is not a national rule. The Government has never met this rule ever.

Professor McMahon said this Government rule is a net spending rule taking account of tax reductions or increases.

Can Professor McMahon clarify that if a package of tax reductions were introduced in the budget in September or October, would this result in expenditure growth of less than 5% to comply with the rule?