Shane Ross (Dublin South, Independent)
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Question 82: To ask the Minister for Finance the method of selection for the appointment of the Fiscal Council; the way they were chosen; if they were personally selected by him or recommended by staff at his Department; the stipend given to the members of the council; and their terms of reference. [20588/11]

Michael Noonan (Limerick City, Fine Gael)
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The composition of a body such as a Fiscal Advisory Council is critical to its independence and credibility. A significant number of potential candidates from backgrounds such as academia and public finance was considered against a range of criteria. In this regard, appropriate technical knowledge and expertise as well as the background and experience of the potential nominees and the desirability of having a significant overseas representation on the Council were considerations. As would be normal practice, the process by which potential nominees were identified, considered and selected involved officials from my Department. The final decisions regarding the appointments were made by me following consultations with Cabinet colleagues and others.

While there have been informal contacts on the question of payment for service on the Council, this issue has yet to be formally addressed in conjunction with the Minister for Public Expenditure and Reform. I am aware that the Chairperson of the Council answered questions on this matter in a recent radio interview.

The Government decided that the Council will have a role comprising the following functions for an initial period of 2 years following its establishment:

(a) to provide an assessment of the soundness of the economic and budgetary projections and forecasts set out by the Government in the annual Budget and the Stability Programme Update,

(b) to provide an assessment of the appropriateness of the fiscal stance set out by the Government in the Budget and Stability Programme Update, including, the Government's stated medium-term budgetary objective, with particular regard to whether they are conducive to prudent economic and budgetary management, including by reference to the provisions of the European Union Stability and Growth Pact,

(c) to provide an assessment of whether the budgetary plans set out in the Budget and Stability Programme Update are consistent with the fiscal rules which it is proposed to publish as part of a Fiscal Responsibility Bill by the end of the year, and

(d) to perform such other functions, including an assessment of the implications of budgetary plans for economic growth, investment and employment, as may be assigned by the Minister for Finance.

The Government also decided that in carrying out its role, the Council will maintain within its structures a technical ability to provide an informed assessment and critique of the official macroeconomic forecasts, in line with its mandate,

The Government is satisfied that the appointed members have the ideal mix of skills and experience to ensure that the Council will be highly effective in fulfilling its mandate.