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Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: They are certainly three external significant risks we face. There are additional things internally that are of concern to me such as ensuring I do all I can to make sure prices and wages continue to grow at a moderate level and try to make progress on the issue of how we can deliver more homes and better schools without it generating inflationary pressures within the economy. More...

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: I recognise as a significant problem that we have to get families out of bed-and-breakfast accommodation and we have to get to a point where we are delivering affordable homes for people and building more homes. At the same time, as the Deputy said, we are already experiencing the so-called capacity constraints in some parts of our economy. That is code for not being able to get people to...

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Deputy Boyd Barrett made a point on additional expenditure. It is not that I am for any reason against additional expenditure. I have overseen expenditure move ahead over the past two years as Minister for Public Expenditure and Reform. My key point is that if we have expenditure that goes beyond a certain level, then we must have additional taxation plans to be able to pay for it. Of...

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Yes.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Yes, it will.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: It is 0.9%.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Yes, it is.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: No, we did not.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: The European Commission was of the view that we delivered our MTO objective.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: It is to deliver the MTO. The European Commission was of the view that we delivered it despite that deviation.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Yes-----

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: -----and the Commission was of the view that we delivered our MTO.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: If our structural deficit was not to improve, my view is that the European Commission would view that as a breach of the fiscal rules. It would say we are not meeting our MTO and not improving our structural deficit.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: I have explained the extenuating circumstances to Deputy Pearse Doherty. There was a shift in a single quarter.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: That is correct.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Yes, we would.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Yes, that is the case.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: The Commission would be of the view that we are increasing borrowing in our economy at a time that we should not.

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: I am clear that if we were at a point where we increased borrowing and our structural deficit was to disimprove-----

Committee on Budgetary Oversight: Summer Economic Statement: Discussion (11 Jul 2018)

Paschal Donohoe: Let me finish.

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