Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

8. To ask the Minister for Public Expenditure and Reform if he will indicate, based on the achievement of the various economic targets set in respect of public expenditure and reform for the current year, the degree to which he expects to be in a position to encourage economic growth in the context of his preparation for Budget 2015 with a view to positively impacting on the domestic economy; and if he will make a statement on the matter. [29618/14]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

This question relates to the extent to which the Minister may be in a position to narrow the gap between economic growth and debt, keeping in mind the target set for the troika but at the same time encouraging the domestic economy by generating growth and expenditure.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

In setting budgetary allocations, the Government balances the requirements of bringing sustainability to the public finances, promoting and supporting economic recovery and protecting the most vulnerable in society. 

The Government's overall fiscal target for next year is to reduce the general Government deficit to below 3% of GDP by the end of 2015. The scale of the adjustment required to meet this target will be decided by Government in the context of the budget, based on the most up-to-date economic and fiscal data at that time. In this regard, the most recent economic information is very encouraging.

I announced at budget time that our second three-yearly comprehensive review of expenditure would be carried out this year. This review is under way and will be a focused examination of expenditure by all Departments, taking account of Government spending priorities in order to identify areas of potential savings and efficiencies.  In parallel, a separate review of capital expenditure is also being conducted with a view to realigning future investment priorities and to reset the medium-term capital envelopes for the next five years.

Targeting capital investment on projects with a high employment content can benefit local economies throughout the State. To this end, since July 2012, I have made a series of announcements in relation to additional capital investment as part of a stimulus package. These projects are spread around the country in order to create economic activity and jobs on a regional basis.

Public service reform has been a key element of the Government's strategic response to the economic crisis and is a central theme in the programme for Government. The Public Service Reform Plan 2014-2016, published in January this year, contains a detailed action plan with clear timelines. Public procurement is a key area of reform. In carrying out reforms in this area, the Government is committed to ensuring that SMEs are encouraged to participate in procurement and to maximising the social benefits, such as employment and training opportunities, that can be delivered under public contracts. The implementation of measures in the public service reform plan relating to SME access to public procurement will, I am determined, facilitate growth.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister and congratulate him and his colleagues on their spectacular performance to date in achieving the targets they have achieved in a very difficult situation. To what extent is the Minister prepared to consider areas that might show potential for easing the burden on the domestic economy but at the same time maintaining the targets already set and committed to?

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Deputy has quite rightly encapsulated Government policy, which is to ensure that we have restored the economic fortunes of the State to have a sustainable platform into the future that will attract inward investment, which we have seen in spades, with more inward investment in the past year than we have seen for a very long time. There is a jobs dividend from that, which will allow the domestic economy to recover. That is one of the most challenging next phases. We have been using whatever resources we can get our hands on, including investment from the European Investment Bank and others to have direct stimulus across the country in specific projects. We now will examine the greatly improved economic platform we have built to ensure that we have a budget introduced next year that will, I hope, not only build on the economic progress we have achieved and maintain it but will also give relief to people who are really pressed by some of the decisions that were necessary through the economic crisis.