Brendan Howlin (Wexford, Labour) | Oireachtas source

I understand the very important question the Deputy is asking. The calculation of the expenditure benchmark is subject to a number of key inputs including the GDP deflator and potential growth. The Department of Finance is engaging with the Commission to calculate a reasonable benchmark for Ireland. In the answer to the parliamentary question to which the Deputy referred, the Minister for Finance, Deputy Noonan, gave an indicative figure, but the figure is not fixed because the modality is still being debated, discussed and ironed out with Brussels. Personally, I take the view that a one-size-fits-all scenario is unsuitable because our growth capacity is much greater than that of the rest of the EU. The Department of Finance is working on these matters. This time last year, we expected to be required to make additional adjustments of €2 billion for the budget in 2015. The changed circumstances allowed us not to make those adjustments but to expend an additional €1 billion. That was a change of €3 billion over a year. I expect that ongoing negotiations will give a degree of flexibility in expenditure to meet the demands we have set as well as preserving prudence.

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