Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The proposal raised by the Deputy is one that surfaces from time to time and its consideration has already led to steps in this direction. For instance, my Department provides costings in regard to taxation proposals on a confidential basis to assist parties in advance of general elections or budgets. However, it is fair to say that these costings are limited by being provided on a static, individual basis without analysis of the general government implications or potential economic effects.

A further factor is that Ireland is entering the preventive arm of the Stability and Growth Pact and this will have major implications for fiscal policy in the coming years. Initiatives that improve the quality of debate around budgetary priorities and the best allocation of resources should be encouraged. Accordingly, I am coming to the view that the proposal should be considered in depth. This is a complicated matter and the work undertaken by such a body would have to be subject to strict terms of reference. Care must be taken to ensure that such a body does not supplant the role of Government and the Oireachtas through gaining, for instance, an effective veto power over proposals that it dislikes in purely economic terms.

Various models of this type of service and body already exist. These include independent bodies or offices under the aegis of parliaments. An important factor must be the need to bear in mind the resource implications, both in terms of expenditure and staff. Too much duplication must be avoided.

The Deputy asks if the Irish Fiscal Advisory Council could take on such a role. While this could be one of the options, my first reaction is that it would be difficult to combine its current functions with such a role. We need the council as a fully independent voice to assess the fiscal stance and to assess compliance with the fiscal rules Ireland signed up to in the Stability and Growth Pact and the Fiscal Compact. It also endorses the macro-economic forecasts. Even if the differing roles could be made fully compatible, I think it is safe to say that the current part-time role of the council members would not be feasible.

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