Martin Ferris (Kerry North, Sinn Fein)
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Question 75: To ask the Tánaiste and Minister for Finance his views on whether the commitments to cut income tax contained in the Programme for Government are viable; and if he will make a statement outlining that it is not his intention to implement these proposed cuts in the foreseeable future. [7695/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Programme for Government sets out a commitment to reduce the standard rate of income tax to 18 per cent and the top rate of income tax to 40 per cent over the lifetime of the Government, provided economic resources allow.

It is clear that we have now entered a period of lower economic growth than was generally envisaged in the early part of last year. This is reflected in the economic forecasts for 2008 published with the Budget in December last. Real GDP is expected to increase by 3 per cent in 2008 before picking up thereafter so that average growth over the three year period 2008 to 2010 is forecast at 3.5 per cent.

I would remind the Deputy that the Programme for Government is a five year programme. Budget 2008 was the first instalment of the delivery of that programme.