Kathryn Reilly (Sinn Fein) | Oireachtas source

In recent weeks there has been much talk about the national finances and potential tax cuts in the upcoming budget. This morning the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, and the Minister for Finance, Deputy Michael Noonan, said the accounts looked positive so far. The IMF post-bailout review is to be released at 4 p.m. Will the Leader facilitate a debate on the issue of tax? Ever year coming up to the budget we ask for a broad discussion on it. Yesterday the Minister, Deputy Brendan Howlin, said there would be some leeway for tax cuts. In May, before the local and European elections, the Minister for Finance, Deputy Michael Noonan, said he intended to widen tax bands to increase the level at which people began to pay at the higher rate of tax. Yesterday the Irish Fiscal Advisory Council warned that there was no leeway for budget cuts. The draft report from the European Commission on its first post-bailout review indicated that statements by the Ministers were creating expectations that would be difficult to manage. Given these comments, it is important that we have a broad discussion on where we are going. Although the national accounts will not be examined properly until the end of the summer and the Minister, Deputy Michael Noonan, would be restrained in what he could tell us and would give no fixed view, it would be worth having a discussion on taxes. It would be good for Senators to have an overview when formulating their budget submissions, especially when the two Ministers are giving opinions that there is leeway, which are in conflict with what the Irish Fiscal Advisory Council has stated. If we had some idea on whether there was flexibility, it would help us in the budgetary process. As has been said many times before, the Seanad can play a very productive role in having an input into the budgetary process prior to October.