Mr. Seamus Coffey:

You could say spending is too high and on the other hand argue tax is too low. If you have a certain level of spending you are targeting, we want it done in a sustainable fashion. What we are trying to avoid is the sort of boom-bust cycles we have seen previously where spending has been increased but not on a sustainable tax base. The Deputy mentioned 2004, 2005 and 2006 where it was clear - looking back at least - those spending increases were on the basis of temporary tax revenues from the construction sector. When they evaporated, significant spending cuts were introduced.

Regardless of the level of Government spending - which is something the fiscal council does not have a view on - we are looking for spending to be sustainable. We are looking at a tax revenue base which provides those funding sources every year, not just when the money comes in. Whether that is conservative - that is down to the definition you use - we are agnostic on the size of the Government sector but we do not want to see this boom-bust cycle that has plagued Irish fiscal policy for 40 or 50 years.