Brendan Howlin (Wexford, Labour) | Oireachtas source

The Government has decided to provide only an additional €800 million of fiscal space for new measures next year. The arbitrary fiscal stance taken by the Government is that €500 million will be set aside for the so-called rainy day fund that is likely to be invested abroad and a further €900 million will be unspent. Some €2.6 billion will be added for previous commitments which are already accounted for. The Taoiseach stated during Leaders' Questions that he envisages a tax package forming part of the additional spend. Is it his view that the ratio of 2:1 on additional spend to tax will be reflected in that? If that is so, will that 2:1 ratio include the €2.6 billion of commitments made on additional capital, public pay and demographics which are embedded in the numbers for next year?

I have been seeking clarity on the rainy day fund for some time. Where will the fund, comprising €500 million, be placed? Is the figure the Taoiseach gave to the House of a deficit target for next year of 0.1% of gross domestic product, GDP, a sum of approximately €250 million to €300 million, accurate? Is it his intention to borrow that sum to put it aside? That does not make any sense to me.

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