Dan Boyle (Green Party)

Senator Fitzgerald inquired as to whether there will be a new budget. In the aftermath of both Houses taking measures in respect of the public sector pension levy, it is hoped that the fall in tax receipts evident in the tax returns for November and December will be corrected. It is also hoped that the next budget will be introduced in December of this year as planned. If the position relating to tax receipts deteriorates any further, the Government has the option of introducing new measures. Such measures could be budgetary in nature and could come in the form of a new Finance Bill.

The Senator also inquired whether it is intended that a new central banking commission will replace the Financial Regulator and the Central Bank and Financial Services Authority of Ireland. It is certainly intended to supersede both bodies. We hope the legislation being prepared will confer on the new commission powers that are additional to those which the bodies in question already possess. It is also hoped that a distance will be achieved between the act of regulation and those being regulated. The system in that regard has proven to be extremely deficient in recent years.

Senator Fitzgerald further inquired about salary caps for those in financial institutions and banks. The Government anticipates receiving a report on that issue in the early part of this month and this report will inform a Cabinet decision. I hope that part of that decision will be a recommendation that particular caps be placed on levels of remuneration in banks and financial institutions.

The Senator proceeded to ask about front-line services. It is not the Government's intention to diminish any such services. In the context of the measures announced last year and in the first two months of this year, it will not be possible to provide the additional expenditure announced in the past three years in respect of many of the areas to which these services relate. This has led to a diminution of services in some of those areas to the levels that obtained in 2007, 2006 or 2005. It is not the intention of the Government to diminish any of these services below a level which the public purse can support.

Senator O'Toole requested a debate on financial regulation. There have been numerous requests — mainly from Senator Norris — for a rolling debate on the economy and if the latter took a thematic form, a debate on regulation could be accommodated within an overall schedule which we might discuss.

Senators O'Toole, Alex White and Leyden referred to the reduction in energy prices. An announcement was made earlier today to the effect that, from April, electricity prices are to be reduced by 10% and gas prices by 12%.