Brendan Howlin (Wexford, Labour)

The Deputy will be aware that in the last published quarterly review associated with the memorandum of understanding, indicative figures were published. Those figures stand but there is an understanding that it will be up to the Government to negotiate within the parameters set. The parameter figure is €3.6 billion.

The other relevant figure is the deficit target for next year, which is 8.6%. The best estimate we have at present is that an adjustment of approximately €3.6 billion will arrive us at 8.6%. However, this is not set in stone because there are so many variables between now and the end of the year. The latter part of the year is the most important in terms of revenue, as the Deputies opposite will know. At present, revenue figures are steady and expenditure is on target as it is marginally below the indicative figures for the first half of the year by approximately 1.5%.

We need to be vigilant in terms of controlling public expenditure and looking at the tax take for the rest of the year. We will then be able to make a determination on what type of adjustment will be required to get to the target of 8.6% for next year. There is a range of variables, some of which will not be determined by the State such as the cost of the money we are getting. All of this may impact on the overall budgetary arithmetic.

The comprehensive review of expenditure is a process - not a book to be published - with many people making an input. I want to have an open process into which people input ideas without reservation so we can have all ideas properly costed. The timeframe is very short and it will not be as rigorous as I would like. The Canadians took years to do it but we do not have such a luxury. We will give it our best shot in the few months we have and we will then present our options to the Government and to the House.

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