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Budget 2013

Dáil Éireann Debate, Tuesday - 11 December 2012

Tuesday, 11 December 2012

Questions (145, 146, 147)

Mary Mitchell O'Connor

Question:

145. Deputy Mary Mitchell O'Connor asked the Minister for Finance if a poverty impact assessment has been completed on Budget 2013; if a poverty proof report will be published; and if he will make a statement on the matter. [55558/12]

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Mary Mitchell O'Connor

Question:

146. Deputy Mary Mitchell O'Connor asked the Minister for Finance if an equality impact assessment has been completed on Budget 2013; if a gender impact assessment report will be published; and if he will make a statement on the matter. [55559/12]

View answer

Mary Mitchell O'Connor

Question:

147. Deputy Mary Mitchell O'Connor asked the Minister for Finance if a regulatory impact assessment has been completed on Budget 2013; if a regulatory impact assessment report will be published; and if he will make a statement on the matter. [55560/12]

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Written answers

I propose to take Questions Nos. 145 to 147, inclusive, together.

As I have stated recently in response to a number of related parliamentary questions, when focusing on the primary objectives of reducing the deficit and returning sustainability to the public finances, it has been of vital importance to the Government to spread the burden of the adjustments made in as fair and equitable a manner as possible, while also seeking to minimise their negative impact on economic growth.

I would like to make the Deputy aware that the Programme for Government does contain a commitment to require all public bodies to take due note of equality and human rights in carrying out their functions. Furthermore, the Cabinet handbook requires a statement on the likely effects of the decision sought on equality and persons experiencing or at risk of poverty or social exclusion to be included in Memoranda to Government. Consequently, Government does consider each of these important issues at an individual policy or programme level. I would also remind the Deputy that the State and its bodies take the provisions of equality legislation into account in the development and delivery of its policies and services.

In addition, a distributional analysis of proposed budget measures is performed each year based on various income levels for the different categories of income earners, for example single individuals, married one-earner couples with no children and married one-earner couples with children. A distributional analysis which models the impacts on disposable income by income decile using SWITCH, the ESRI Tax-Benefit model, is also undertaken in evaluating various budgetary options. Illustrative examples are contained in the Budget 2013 document.

With regard to Regulatory Impact Analysis, although it can potentially benefit all policy areas/regulations, it is not compulsory to apply RIA to the Finance Bill. Generally speaking, the revenue measures I introduced as part of Budget 2013 will be given legislative effect through the forth coming Finance Bill. As detailed in the guidelines the publication of a RIA may not be appropriate in the case of tax law/regulations or the imposition of charges because of their sensitivity and the need to guard against possible evasion or avoidance.

Nonetheless, the Revenue Commissioners have an ongoing focus on minimising the administrative burden on business and have recently reported to Government that they have reduced the burden by 25%, saving business over €85 million a year. Furthermore the latest World Bank report shows that Ireland continues to be the easiest country in the EU in which to pay business taxes.

The primary objective of Budget 2013 was to reduce further the deficit in our public finances in line with our commitments, since it is not sustainable to continue running such large deficits. The measures introduced within the Budget are deemed necessary in order to reduce further the deficit in the public finances and so as to ensure continued adherence to fiscal targets set as part of the EU/IMF Programme.

The Government has sought to implement the measures required to reduce the deficit in a manner that was as fair and equitable as possible and in a manner that would protect the emerging economic recovery. While this is a difficult task and one which has required that difficult decisions be made by Government, I am satisfied that we are implementing the necessary adjustments in such a manner.

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