Dáil debates

Thursday, 8 July 2010

Referral to Committee of Macro-economic Policy Lessons: Motion


1:00 pm

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Minister, Department of Finance; Dublin West, Fianna Fail)
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I move:

That Dáil Éireann requests the Joint Committee on Finance and the Public Service, to consider the following Reports:

— 'The Irish Banking Crisis: Regulatory and Financial Stability Policy 2003-2008', by the Governor of the Central Bank, and

— 'A Preliminary Report on The Sources of Ireland's Banking Crisis', by Klaus Regling and Max Watson,

which were laid before Dáil Éireann on 9th June, 2010; and

taking account of the emerging EU proposals relating to fiscal and economic governance, to conclude its deliberations by 30th October, 2010 and to publish and report back to Dáil Éireann its findings and conclusions no later than 4th November, 2010 on the following key policy lessons in relation to macroeconomic management set out in the report by Klaus Regling and Max Watson:

— the role of macro-economic management and surveillance in securing the longterm sustainability of Ireland's economic performance and also in responding on a timely basis to risks and imbalances that may build-up in both the private and the public sectors of the economy, including external imbalances vis-À-vis other Euro area members and the funding of any imbalances that might arise;

— the role of fiscal policy in securing an appropriate alignment of the national business cycle with monetary conditions in the economy;

— the requirement for the design and conduct of budgetary and taxation policies to take account of the cyclical nature of particular revenues as well as their temporary nature in certain circumstances in order to maintain an appropriate and effective tax base; and

— the case for the establishment of new institutional structures to provide an independent validation of economic and fiscal projections as well as for the introduction of domestic medium-term fiscal rules.

Question put and agreed to.