Pearse Doherty (Donegal South West, Sinn Fein)
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Question 63: To ask the Minister for Finance his views on the analysis of Callan, Keane, Savage and Walshe as detailed in Figure 1 page 49 and the Conclusion on page 55 of the ESRI special articles, distributional impact of tax, welfare and public sector pay policies 2009-2012 (24.2.12), where the authors conclude that Budget 2012 involved greater proportionate losses for those on low incomes, reductions of about 2% to 2.5% for those with the lowest incomes, as against losses of about 0.75% for those on the highest incomes; and if he will make a statement on the matter. [15076/12]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the publication "Distributional Impact of Tax, Welfare and Public Section Pay Policies: 2009-2012" by the ESRI which assesses the distributional impact of budgetary measures undertaken in response to the economic crisis. I believe it is misleading to measure the impact of a single Budget in isolation without any regard to preceding Budgets or Budgets yet to come.

The ESRI publication takes account of the impact of all Budgets in the period 2009 to 2012 and, in the same paragraph on page 55 that the Deputy is quoting, concludes that "Losses imposed by policy changes in tax and welfare have been greatest for those on the highest incomes, and smaller for those on low incomes". The ESRI also acknowledges that the overall distributional pattern of Irish austerity measures is among the most progressive in 6 EU countries examined in a recent study by the European Commission.

The Deputy should look at Budget 2012 in the medium-term with regard to what it is intended to achieve. Budget 2012 is this Government's first step on a road to fiscal balance, renewed growth and prosperity through which job creation is at the core. That is the context in which Budget 2012 should be assessed.