Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 60: To ask the Minister for Finance if he has had discussions with the EU and the International Monetary Fund in relation to the lowering of personal income tax bands and credits; if he will bring forward measures to offset the measure in the EU-IMF programme to further lower personal income tax bands and credits for the 2012 budget in view of the fact that the programme for Government states that it will maintain current bands and credits; if this issue was discussed with the external partners; and if he will make a statement on the matter. [9650/11]

Michael Noonan (Limerick City, Fine Gael)
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The position is that the issue of maintaining tax credits and bands at their current rates was discussed with the European Commission, IMF and ECB Troika during the recent Review Mission of 5 April to 15 April 2011. As the Deputy is aware, the Government has initiated a Comprehensive Review of Expenditure (CRE) to provide the Government with a set of decision options to meet the overall fiscal consolidation objectives and re-align spending with the Programme for Government priorities. The CRE is due to be completed by end September 2011.

When this review is complete, the Government will examine the findings and based on these findings and consultation with the Troika will introduce fiscally neutral changes to the detail of the EU/IMF Programme of Financial Support for Ireland while maintaining the overall commitment to fiscal consolidation.