Brian Lenihan Jnr (Dublin West, Fianna Fail)

I answered the Deputy's question when I indicated I had not received a submission in the matter yet.

On Deputy Creighton's question, the ratio between expenditure, both current and capital, and taxation, will be set out in the national plan. It is, however, a matter of general economic wisdom that a correction is more effective if it leans on the expenditure rather than taxation side. Budgetary corrections which rely to an excessive degree on the imposition of taxation have generally not been as successful as budgetary corrections which lean on the expenditure side. That is not to say the Government is not examining both taxation and expenditure options in the context of the plan and budget. While everything has to be examined, my general assessment is that a correction which relied, for example, by as much as 50% on the taxation side would do much more damage to the economy than a correction that would lean to a lesser degree on taxation. The economic literature bears out that contention very strongly.

On the question regarding Independent Deputies, while I am not engaged in any bilateral discussions with Independent Deputies, they are entitled to make their views known about the general direction of budgetary strategy. I am sure they will do so with me.

See this speech in context