Anthony Lawlor (Kildare North, Fine Gael) | Oireachtas source

Deputy Healy-Rae’s father might have been running at the same time. At the time promises were made to scrap rates on property – we are bringing back property tax now – and car tax in order to get a party elected. If we had in place what we are endeavouring to put in place now, none of the ridiculous promises that caused economic hardship for the next ten years in this country would have been possible. In the period from 2002 to 2008, we regularly spent 10% more than we took in on tax receipts. That did not make economic sense. The economic growth during the period was less than what we were spending at the time. We are taking these little steps to ensure there is inherent regulation of the budgetary process.

I welcome the fact we are planning ahead by introducing budgetary ceilings. Previously, when Governments introduced budgetary ceilings for two or three years, they were not adhered to. It is incumbent on us to adhere to the budgetary ceilings we put in place in conjunction with the Department of Finance. That would give us an opportunity to put in place a budgetary process on which we could plan ahead. From what Ministers have said, it is clear what we will do in this year’s budget. Everyone knows the breakdown of the cuts and taxation elements of the budget and that we have to take €3.6 billion out of the economy in 2014. The plan has been clearly set out by the Minister for Finance. Although the figures are large, the fact that they exist is a benefit because they will help the markets to understand where we are going. There is a challenge to maintain the upper limits in the future. We must work hard with the Department of Finance to ensure the figures we set out are achieved. That creates problems for various line Ministers.

Because we will have narrower budget deficits, at times we will end up with surpluses and we must learn how to deal with them. It might be necessary to introduce a Bill on how to deal with surpluses in the future. Deputy Catherine Murphy is laughing but I always look at the long-term picture rather than short-term, narrow gains.

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