Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

76. To ask the Minister for Finance the impact on the fiscal space and the financial contractual obligations to consultants being honoured operating under the 2008 consultants' contract; and if he will make a statement on the matter. [27276/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The settlement results in a payment of €31 million in relation to 2018 and an annual ongoing cost of €62 million from 1 January 2019.

Therefore the impact on fiscal space in 2019 is the increase of €31 million (€62 million minus €31 million) in 2019 over 2018.

There is no effect thereafter as it will be in the expenditure base.

As I outlined in the Summer Economic Statement 2018, the concept of fiscal space is no longer an appropriate one for Ireland.  Budgetary policy will be formulated on the basis of what is right for the economy at this stage in the cycle and not by rules that would increase borrowing.