Billy Kelleher (Cork North Central, Fianna Fail)
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Question 31: To ask the Minister for Finance his views on the recent report from the Irish Fiscal Advisory Council, in particular, on the outlook for the public finances in 2012; his views on the work of the council in general; and if he will make a statement on the matter. [19276/12]

Michael Noonan (Limerick City, Fine Gael)
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Last year, the Government established a Fiscal Advisory Council which is to report periodically on the fiscal position. In that context, I welcome the recent publication of the Council's second Fiscal Assessment Report. I note the Council's warning that a further €400 million in consolidation measures may be necessary to meet the 8.6 per cent of GDP General Government deficit target this year.

It is of course extremely important that we adhere to the deficit targets which have been set and that we restore sustainability to the public finances as soon as possible. In this context, Government will take the views of the Council into consideration.

On the other hand, I am very conscious of the impact that a larger adjustment could have on economic activity. In striving to restore sustainability to the public finances, we must also be mindful of protecting the emerging economic recovery and seek to strike the right balance between the two. This balancing act is difficult.

In relation to the need for more consolidation this year to meet our Budget targets, I don't believe that this will be necessary based on the first quarter Exchequer Returns.

The Returns show that taxes have made a good start to the year, performing better than expected in the first quarter. While voted expenditure showed some pressures, I am confident that it will be actively managed within agreed limits and I know that the Minister for Public Expenditure and Reform will be stressing upon colleagues the importance of adhering to the 2012 spending targets, as was done in 2011.

We will of course continue to closely monitor all economic and fiscal developments and will take the measures necessary to meet our targets.