Dáil debates

Wednesday, 2 July 2008

11:00 am

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)

When the NDP was published, it stated clearly on page 16 that it was subject to a prudent budgetary policy fully consistent with the Stability and Growth Pact. That was reiterated by me and my colleagues on numerous occasions. It is stated on the same page that the NDP will "allow for reallocation as necessary depending on evolving priorities and the economic and budgetary situation." The NDP is the same as a budget or anything else in that it has to be subject to the availability of resources.

To answer the Deputy's question on prioritisation by Ministers, if in the first year of a five year programme one ends up in a situation where the rate of growth is much less than anticipated because of the environment in which we find ourselves, one's first priority has to involve consolidating the existing position and trying to maintain the services built up over the years. That is the amount of resources available. If one can get out of this situation — it is said that 2009 will be a difficult year, with higher growth rates perhaps beginning in 2010 — one will be in a position to resume the prioritisation. One will see the priorities for years three, four and five at that stage. In the context of 2009, one would use the Estimates campaign to work out with the Minister for Finance the policy changes, value for money and level of increased output that can be obtained for the resources allocated on the basis that one has to sustain a doable budgetary position over the period. That is how one would proceed and that will emerge in due course.

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