asked the Minister for Finance if any directives have come from the EEC regarding cutbacks in public spending or any advice relating to future budgetary policy; and, if so, the form this has taken.
Ceisteanna—Questions. Oral Answers. - Public Spending Cutbacks.
30.
Towards the end of each year the Council of the European Communities issues a report on the economic situation in the Community which contains general guidelines on economic policy for a year ahead and more specific economic and budgetary guidelines for each member state. This year's report was adopted by the Council of Ministers on 22nd November, 1976, will shortly be published in the Official Journal of the European Communities and will be laid before the Houses of the Oireachtas. As far as budgetary policy in this country is concerned it says "current budgetary policy will have to be restrictive and ensure notably that the net borrowing requirement of the central Government registers a further relative decline in 1977. This would mean that it should not exceed the figure contemplated in the budgetary outlook for 1976. This guideline implies a strict limitation in the rate of growth of expenditure, which should be below that of gross domestic product in value, or, should the occasion arise, further fiscal measures".
Does the Minister intend to follow this advice?
As this view is an endorsement of the Government's policy as already declared by me and as is being fulfilled this year, the Deputy may be sure that it will be followed.
Are we thinking aloud again?
I was referring to the quotation the Minister gave which seemed to relate to budgetary policy for 1977. Since the Minister can hardly have followed that policy yet, enormous though his contortions can be, perhaps he would tell us whether he intends to follow in 1977 the advice offered him in Kuwait in 1976?
I would remind the Deputy that what I said was that the guidelines suggested there would be a "further relative decline" in 1977 and my report acknowledges there has been a decline in 1976 and urges that this line be followed again in 1977.
I understand that. The question I put to the Minister is: does he intend to accept that advice?
I indicated I intend to carry out the highly successful policies I have operated in 1976.
The remaining questions will appear on tomorrow's Order Paper.