Finian McGrath (Dublin North Central, Independent) | Oireachtas source

I welcome the opportunity to speak on the Bill, which addresses the management of the public finances, expenditure and budgets. This debate provides an opportunity to examine, reform and change the system. We must be clear and honest with people. The days of false promises and inefficiency should be consigned to the past and the game-playing replaced with sensible management of the public finances. If this is done in a fair and equitable manner, we could build for the future. People want hope and a vision for change. Above all, they want action which will have a positive impact on their lives.

The Bill allows the Government to anchor its already operational multi-annual expenditure limits in national law. This is a requirement under the EU-IMF programme of financial support for Ireland. Specifically, it amends the Ministers and Secretaries (Amendment) Act 2011 and in doing so provides for medium-term expenditure management through multi-annual Government and ministerial ceilings. This is the core element of the legislation.

We must address the issues of banking, the economy and distressed mortgage holders, because families are suffering as a result of what took place in this country. We must deal with the €64 billion put into the banks. Small businesses are being devastated.

At the same time, there must also be accountability and transparency. There are examples of the latter in many parts of the public service. I was previously employed as the principal of a small school in a disadvantaged area. The school in question was probably one of the poorest in the country and I recall how every single cent of its budget had to be accounted for and how the books were checked regularly by inspectors from the then Department of Education and Science. If we were €1 or €2 over our budget, someone would be on our case. The money in that school's budget was spent on the weakest and most disadvantaged pupils in the country. I am aware that this is also the case with the modern DEIS schools. The Minister of State, Deputy McGinley, knows a great deal about this matter and has a good understanding of the position. DEIS schools receive taxpayers' money and they keep records and must account for every single cent. That should be the case across every Department.

In the context of the legislation before the House and the broader economic issues by which the country is affected at present, Deputy Donnelly put forward many sensible suggestions for reform. It is not acceptable for Ministers to state continually that members of the Opposition do not put forward constructive proposals. I ask the Minister, Deputy Howlin, to take on board these sensible proposals. We were all elected to this House on the basis of a vision for change and reform. When we knocked on their doors during the 2011 election campaign, people asked if we would take action to fix what was wrong and if we would do our best for the country. That must also be measured in the context of State revenues and expenditure.

The Constitution states, at Article 28.2, that the executive power of the State is exercised by or on the authority of the Government. The Constitution also states that the Government, which is responsible to Dáil Éireann, is collectively responsible for the Departments of State administered by its members and that the Taoiseach, the Tánaiste and the Minister for Finance must be members of the Dáil. All State revenues must be paid into one fund - called the Central Fund or the Exchequer - and the Government then draws on this for expenditure in respect of State services. As stated by previous speakers, Government expenditure consists of voted and non-voted expenditure. The larger part of Government expenditure consists of voted expenditure, which is for the ordinary services, called supply services, of Departments. Following the Government's proposals, the Dáil is asked to vote on authorising the moneys in respect of these services each year. Non-voted expenditure is paid out of the Central Fund under specific legislation, without annual reference to the Dáil. This consists of expenditure on items such as servicing the national debt, the Houses of the Oireachtas Commission, share subscriptions to State bodies, judicial salaries and pensions and the salaries and pensions of Uachtaráin na hÉireann and of the Comptroller and Auditor General. What I have just outlined are the nuts and bolts of the legislation before the House.

Under the EU-IMF programme of support, Ireland is committed to implementing a number of reform measures in respect of its budgetary management process. These will build on reforms undertaken to date, particularly since 2006, which were aimed at increasing the transparency and effectiveness of the budgetary process. The two words on which we must focus in this regard are "transparency" and "effectiveness". Both previous and current reforms are outlined in the Bill, as are a number of the weaknesses identified in the Irish system.

I welcome the Bill and the broader debate on this matter. I urge the Minister to listen to what Opposition spokespersons are saying. We were all elected on a platform of reform. I would like the Estimates process to be modernised. In that context, an evidence-based process is required as a matter of urgency. In addition, there is a need for transparency in respect of non-voted expenditure. Real reform, real change and real accountability are required. Imposing guillotines in respect of important legislation such as finance and social welfare Bills is not sensible, does not represent good practice and is a danger to the State. I am grateful to have had the opportunity to address these issues and I hope the Minister will take our views on board.

See this speech in context