Results 24,861-24,880 of 27,945 for speaker:Michael McGrath

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: I thank the Chair for the invitation to discuss the SPU. The document was published in draft form on 18 April 2023. In accordance with our legal requirements, the final version will be submitted to the European authorities on Friday, 28 April 2023. By way of background, the annual update of the stability programme is prepared each spring by my officials in co-operation with the Minister...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: I will take that question. That is a decision we will make in the context of the summer economic statement. We will give consideration over the coming months to the issues the Deputy has raised. As he will know, the 5% spending rule was predicated on an assumption of inflation at 2% and then a trend real growth rate of 3%. That is where the 5%, as the Deputy will know, has come from. We...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: That is the position. We will make the position clear in the summer economic statement, but I would like to see another couple of months of data. While we are forecasting inflation to average 2.5% next year, it will not start the year at 2.5%. In the table in the SPU that set out the quarter-by-quarter pathway of our inflation forecast, 2.5% is the average.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: We will make an assessment in the coming months but we are not reaching a definitive conclusion now.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: Yes, because that will set out what we regard as reasonable budgetary parameters. This document does not set out the budget or even parameters for the budget. It is strictly on a no-policy-change basis, so we are not introducing new estimates on a policy basis of different numbers on the expenditure side, for example. We are updating the economic forecasts; we are not providing input into...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: The summer economic statement, however, will set out our estimate at that point in the summer of the budgetary stance.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: Regarding corporation tax, in the next couple of weeks I will publish a scoping paper that will set out our thinking on a long-term savings vehicle. It will be related to those windfall receipts that have been identified. The paper published by the Revenue today highlights not just the extraordinary growth in the receipts but the increasing concentration that I am sure the Deputy will have...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: I concur with the Deputy’s point on the labour market. It is a remarkable performance across the economy. It is across a whole range of different sectors, which is heartening to see. Ireland is an attractive country for inward investment. We continue to perform exceptionally strongly. The foreign direct investment, FDI, base is gaining strength all the while and we are seeing more...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: It will take place on the second Tuesday in October.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: The receipts we are collecting constitute real money. We welcome that there is buoyancy in relation to corporation tax receipts but, at the same time, we cannot ignore the underlying trend. The growth has been truly extraordinary. In 2011, we collected about €4 billion. Last year it was €22.6 billion. This year we believe it will exceed €24 billion. When the...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: The exact relationship between the existing fund and the new fund is one we will consider. One option would be to assimilate the existing reserve fund into the new fund but that detail is under consideration and will be the subject of discussion. However, it is a separate fund and it has a longer term focus and will be invested. The existing fund is administered by the National Treasury...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: I will be very brief. The scoping paper we will publish will set out different scenarios for options and we will have to determine how much is transferred into the fund over time. That will be dealt with at a high level in the scoping paper that is about to be published.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: Much has been written about forecasts in the last week or so. Large surpluses of €65 billion are forecast for between this year and the following three years. They are only forecasts; it is not money we have now but represents the central scenario and the current best estimate by officials in the Department of what is likely to happen. Additional demands may arise. We discussed...

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: I thank Deputy Nash. The answer is that there was a significant one-off transaction in stamp duty in 2022. That has affected the baseline position. As the Deputy stated, the changes in excise are a function of the policy choices and transactions we have made to those taxes.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: We do not get into individual transactions.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: I also do not have the detail of individual transactions, nor should I have.

Committee on Budgetary Oversight: Stability Programme Update: Ministers for Finance, and Public Expenditure, National Development Plan Delivery and Reform (26 Apr 2023)

Michael McGrath: The scoping paper we will publish shortly will look at a number of international models. I acknowledge what the Deputy said about being constructive and I value the work of the committee. This is important work for the committee to undertake as it is a significant decision and will have a major impact. We have yet to decide on the detail of the investment strategy. It very much depends on...