Paschal Mooney (Fianna Fail)

I thank the Minister for the lucidity he brings to a very complex area. The Institute of Taxation has indicated this week that the Minister will have very little wriggle room for getting more taxation from the system. It suggests he should look at the VAT rates as being the only area in which he will have some wriggle room, despite the EU. I refer to his comments relating to the beneficial impact of the reduction in the service VAT rate to 9% which has created jobs. The restaurant association states that 500 new jobs have been created. Has the Minister any comment to make on the quarterly report of the Central Bank regarding the debate on whether the amount will be €3.6 billion or €4 billion? Based on his earlier comments, will he be less austere in his approach? Austerity measures do not stimulate growth. The figures in the Central Bank report show that the worst tax returns were last year and there is growth in the economy this year. This can be contrasted with the severe austerity measures in 2008 and 2009 which resulted in a flatlining of the economy. I accept that these are budgetary issues but I would be interested to hear the Minister's thoughts. Ultimately it is all about job creation and protection of the economy. Has the Minister any views on the capital expenditure programme? Does he think there should be a more Keynesian approach taken although this seems to be out of favour at the moment in Europe?