Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I thank the Deputy for her questions. The Government published an agreed economic plan which set out specific targets to bring the deficit below 23% by 2015 and eliminate it by 2018. By balancing the books in 2018, we will no longer have to borrow to fund the day-to-day services provided by the State. This will make Ireland far more attractive for jobs and investment and keep our debt very much under control.

I welcome, as does the Minister for Finance, Deputy Michael Noonan, the input from the Fiscal Advisory Council, which was set up by the Government for a particular purpose. We agree that meeting the deficit target of under 3% next year is critical, and Government policy will reflect that. The Minister has pointed out on many occasions that this is the target and that an adjustment is required to reach it. We cannot say now what that adjustment will be because we have no final view of the national accounts until later in the year. It is too early to make a decision as to what the size of the adjustment will be. It is a lever to achieve the target that has been set out, but 90% of the adjustment has already been made.

The Government's fiscal adjustment plans are in line with the requirements of the new fiscal framework. I am advised by the Department of Finance that the Government is not going beyond the minimum requirements of that framework, and I understand the Department will specifically query the conclusion the Fiscal Advisory Council has reached. The rules of the EU fiscal compact treaty require Ireland to attain our medium-term objective of a structurally balanced budget by 2018. Under the treaty, the European Commission - not the Irish authorities, as suggested by the advisory council - sets out what it calls the calendar of convergence. Like other member states, Ireland is obliged to adhere to the EU fiscal rules, the objectives of which are to prevent a recurrence of the extreme crisis we experienced in recent years and ensure EU economies can grow and jobs can be created.

The commitment the Fine Gael Party gave prior to the local elections was that its elected members would not vote for an increase in commercial rates and would reduce the property tax where that was possible, with a clear indication given that it would not, however, be possible in all cases. The newly elected councils are getting down to preparing their budgets for 2015. The commitment the Deputy referred to was very specific, namely, no increase in commercial rates, the possibility of reducing property taxes where possible and a recognition that such reduction would not be possible in all cases.

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