Kieran O'Donnell (Limerick East, Fine Gael)
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Question 27: To ask the Minister for Finance the changes planned for the preparation of the budget and Estimates for 2010; and the role he envisages for the Houses of the Oireachtas in evaluating choices presented by review groups. [28107/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The broad parameters for the budget for 2010 were set out in the supplementary budget which for the first time set out a multi-annual plan to achieve a general Government deficit of 3% of GDP by the middle of 2013. In terms of the next two years, the supplementary budget set out the indicative split between the necessary further expenditure and tax revenue adjustments required, amounting to up to €4 billion in 2010 and 2011. At the time, I indicated that the expenditure targets were a minimum and the taxation targets were a maximum and I have since elaborated on this to indicate that the scope for further income tax increases is limited. This will mean that other measures that broaden the tax base and further improve the expenditure position are central to the ongoing fiscal consolidation process. It is not clear that further broadening of the tax base will add in a significant way to the amount of revenue that can be raised to meet the necessary targets.

The commission on taxation, which is expected to complete its work shortly, and the special group on public service numbers and expenditure, which is due to report to me imminently, will have an important role to play in identifying measures that will achieve the required adjustments for 2010 and subsequent years, as set out in the supplementary budget.

The report of the special group will assist the Government to identify economies which can be made on the scale necessary to ensure that the public finances are returned to a sustainable path as soon as possible. The special group's conclusions will accordingly be considered on an ongoing basis in the context of preparing the allocation of expenditure this year and for next year.

In relation to the commission on taxation, its terms of reference are far reaching and broadly defined and as Deputies know they allow for consideration of all aspects of the Irish taxation system. The work of the commission will help establish the framework within which tax policy will be set for the next decade at least. I expect to receive the report of the commission shortly and I will bring it to Government for consideration at that stage.

It is intended that the pre-budget outlook will be published in mid to late October, setting out the pre-budget position in more detail based on the latest available data. In this context, my Department will produce updated macro-economic projections which will inform the decision-making process for the December budget. The pre-budget outlook will assist the House by informing the debate in the run-up to the presentation of the budget. I will then set out the details of the budget for 2010 in my address on budget day in early December and the budget will also contain updates to the medium-term economic and fiscal projections.

As the Deputy is aware there is ongoing engagement with both Houses as well as the various committees, in relation to economic and fiscal matters. I have no reason to believe the situation will be any different in the lead-up to the presentation of the budget for 2010.

Kieran O'Donnell (Limerick East, Fine Gael)
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As we have an economic crisis, will the Minister agree that it is time to change the budgetary process to allow the Estimates and annual output statements to be debated well in advance of the pre-budget outlook? Will the Minister allow the Opposition to have an input into the Estimates whereby they can be changed by moving figures from one area to another to bring about efficiencies? Standing Orders can be amended to allow this to happen. At present, the Opposition has not seen the Estimates on budget day and there is no proper discourse. Perhaps these changes could take place. I would like the Minister to take that on board.

With regard to the McCarthy review report and the report of an bord snip nua, will the Minister recommend to the Cabinet that the report be published immediately? Will he call an emergency meeting of the Cabinet so that it can be published before the Dáil goes into recess? These are critical issues on which I would like to hear the Minister's view.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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On the budgetary process, in recent years we have had a unified budgetary process in which the Estimates of expenditure are announced on the same day as the taxation proposals of the Minister for Finance. That is the new, unified budget proposal introduced by my predecessor, which was considered a milestone on the path to reform.

Kieran O'Donnell (Limerick East, Fine Gael)
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Not by the Fine Gael Party.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In effect, under our current system we have a unified budgetary announcement. I would be anxious, leading up to the budget, to give the maximum amount of information to the Opposition parties, as I did before the supplementary budget. I hope to repeat that facility, but I am not sure we can go much further than that. I thought that process was useful before the supplementary budget.

Kieran O'Donnell (Limerick East, Fine Gael)
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It should be a structured engagement.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Responsibility for devising the Estimates falls, under the Constitution, to the Government, which has highly structured engagement on the issue which often lasts many weeks before arriving at final decisions.

As Deputy O'Donnell is well aware I will express my opinions on the McCarthy process to my colleagues in Government, the appropriate place for me to express them. I do not see much scope for emergency Government meetings since our routine Government meeting on Tuesday morning, as the House is in almost continuous session every day this week. I will bring the report before my colleagues at the earliest opportunity available to me.

Kieran O'Donnell (Limerick East, Fine Gael)
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There is no constitutional reason the Minister should not make known the make-up and build-up to the Estimates in respect to the House. The Minister continually suggests the Opposition should be involved in the process. Therefore, he should let us have a structured approach on the Estimates.

It is critical the McCarthy report is published and debated in the House immediately. The Dáil session concludes on Friday. The report has been ready for some time and could have been presented to the Minister prior to last Tuesday and he could have brought it before the Cabinet meeting. What recommendation will the Minister make to the Cabinet on the issue? Will he recommend the McCarthy report be published?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The McCarthy report is only fresh from the printer today, following much textual work required during the past fortnight to finalise the content. There has been no undue delay although a deadline date of 30 June was set. The publication of the report has gone a few days beyond that, but there has not been substantial slippage.

Kieran O'Donnell (Limerick East, Fine Gael)
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What will the Minister recommend to the Cabinet?

Brendan Howlin (Wexford, Labour)
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Allow the Minister reply, without interruption.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I express my views on these matters to my colleagues in Government. That is the duty of a Minister and that is how a Minister operates.

Kieran O'Donnell (Limerick East, Fine Gael)
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Does the Minister not think the House is owed a level of respect?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I will show respect to the House by conveying the Deputy's views to the Government.