Vol. 517 No. 2
60 Mr. Durkan asked the Minister for Finance if his Department has studied the most recent ESRI report; the changes, if any, planned in fiscal strategy in view of this report; and if he will make a statement on the matter. [9321/00]
97 Mr. Durkan asked the Minister for Finance the measures, if any, his Department have taken to address the issues referred to in the most recent ESRI report; and if he will make a statement on the matter. [9430/00]
I propose to take Questions Nos. 60 and 97 together.
I am aware of the recommendations contained in the ESRI's Quarterly Economic Commentary. The Irish economy continues its exceptional performance and the Government is committed to ensuring that this relatively strong progress is maintained. The Government will continue to use fiscal policy, as necessary, to this end.
I agree with the ESRI that the competitiveness of the economy is a key concern. Maintaining competitive wage levels was a key objective of the recently agreed Programme for Prosperity and Fairness, PPF.
The ESRI also highlights pressures in the housing market. Increasing the supply of housing remains the Government's main policy response to the sharp increase in prices. Last year almost 50,000 houses were built, an increase of over 100% since 1993.
The tax cuts which will come into effect next month are part of a medium term strategy to deliver ongoing, sustainable, pay increases and to increase the incentive to work, which will add to the numbers of people joining the labour force and help ease the tight labour market.
Despite these tax reductions, the budget will continue in significant surplus into the medium term. The commitments in the programme are predicated on the Government continuing to run significant budget surpluses, a key factor underlying the prevailing high level of confidence in the management of the Irish economy.
