Dáil Éireann debate -
Tuesday, 5 Nov 1996

Vol. 471 No. 1

Written Answers. - Tax Reform.

Mary Harney

Question:

46 Miss Harney asked the Minister for Finance if he will make a statement on the prospects for tax reform in the next three years; and whether he favours a policy of containing the public sector pay bill at its current cost in real terms while concentrating the fiscal product of economic growth in reducing the tax burden on work. [20309/96]

Minister for Finance (Mr. Quinn)

The Government is committed to a continuing programme of tax reform and the prudent management of public expenditure to facilitate the achievement of this programme.

In regard to the control of the public sector pay bill it is the Government's policy to contain it at a level which is consistent with the needs of the services being provided, and with the requirements of prudent management of the public finances and in particular the requirements of the Maastricht criteria for economic and monetary union. The Government's policy is to ensure that public services are provided in the most efficient and effective manner possible and to this end has introduced the strategic management initiative in the Civil Service and similar initiatives in other areas of the public service.

At this early stage in the negotiation of a successor to theProgramme for Competitiveness and Work, I am not prepared to pre-empt the discussions on pay and taxation by making specific statements such as the Deputy suggests. However, she can rest assured that all parties to the negotiations will be left in no doubt as to the Government's determination to control the cost of public service pay.