Written answers

Thursday, 26 March 2009

4:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Question 104: To ask the Minister for Finance the measures he will bring forward in the 7 April 2009 budget on dealing with the toxic loans in the banking sector. [12769/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware it is not the practice to respond to Parliamentary Questions on the possible inclusion or otherwise of specific matters directly in advance of a forthcoming budget. However, The Government is conscious that in current market circumstances there is a need to bring greater certainty and transparency to the operations of systemically important financial institutions, in particular in relation to specific asset classes currently perceived as carrying a higher than average risk.

In this context, the Government is examining proposals for the management and reduction of risks within financial institutions with respect to these specific exposures, having regard to international developments. As part of this work I have asked Dr Peter Bacon and the National Treasury Management Agency to report to me on the matter. I have seen the report prepared by Dr Bacon for the NTMA. The report will inform the Government's ongoing considerations, along with ongoing work at EU and European Central Bank level. I will be bringing forward proposals in this area as a matter of priority.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Question 105: To ask the Minister for Finance if he will publish the economic plan as part of the 7 April 2009 budget; if not, when this plan will be published; and the length of time this plan is for. [12770/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government's approach to reviving the economy consists of three broad strands — improving competitiveness, stimulating credit supply in our financial system and putting the public finances on a more sustainable basis. Given the deterioration in the public finances in recent months, the focus of the 7 April Supplementary Budget will be on measures to put the public finances on a more sustainable path.

More generally, the Framework for Sustainable Economic Renewal launched by the Taoiseach last December sets out our agenda over the next few years for how we will re-orientate and reprioritise the business of Government to achieve the goal of building a Smart Economy, which will help underpin our future.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Question 106: To ask the Minister for Finance the measures to be proposed in the 7 April 2009 budget involving the taxation of tax free lump sums in respect of public and private sector pensions. [12771/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The House will appreciate that I do not propose to comment on what may or may not be contained in the forthcoming supplementary Budget.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Question 107: To ask the Minister for Finance the parameters he will use for the general Government balance deficit amount and percentage of tax increases, income, PRSI, pension and other levy adjustments and expenditure cuts and savings included in the national development plan in framing the 7 April 2009 budget. [12772/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The Supplementary Budget is to be presented to the Dáil on the 7th of April. The Government has already taken significant action to restore stability to the public finances and the supplementary Budget will continue this process. In relation to the details of what will be presented in the Supplementary Budget, it is not the usual practice to speculate in advance on the content of any Budget and I do not propose to deviate from this practice now. However, all options are on the table, including action on both current and capital expenditure, as well as revenue raising measures.

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