Written Answers Nos. 46-49
46. Deputy Mick Wallace asked the Minister for Finance his views on the estimates by the Nevin Economic Research Institute that Budget 2013 will reduce GDP by 2.1%, cost between 25,000 and 35,000 jobs and lower private consumption by 4%; and if he will make a statement on the matter. [10627/13]
View answerThe economic policies of the Government are designed with the core objective of restoring balanced economic growth. This will, in turn, allow for the continued creation of jobs and for the improvement of living standards for the people of Ireland. However, an essential condition for the resumption of balanced economic growth is sustainable public finances. International research has shown that elevated levels of public debt are harmful for growth prospects and ultimately for employment. As such, the Government is committed to cutting the deficit, stabilising our debt level and putting it on a downward path. Considerable progress is being made in this regard.
I am conscious, however, that consolidation will have a short-run impact on the economy, although I do not accept that the impact is as large as some have suggested. Ireland is a small, open economy with imports accounting for over three quarters of GDP. As a result, a considerable amount of consolidation leaks out through a reduction in these imports. For this, and other reasons, the fiscal multiplier in Ireland tends to be somewhat lower than in many other European countries.
The Government has continually stressed that while further consolidation is imperative for this country’s future, there is also a need to ensure that such measures seek to minimise the impact on the economy and the labour market. With this in mind, Budget 2013 - like its predecessor - was framed in such a way as to make it as jobs-friendly as possible and a number of measures were introduced to assist in this regard, including several initiatives designed to lend support to Ireland’s job-rich SMEs.
It should be noted that Ireland’s commitment to carrying out the necessary structural reforms has had clearly visible confidence effects in the financial markets - as evident in the decrease in bond yields in recent months.
47. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on the status of the mortgages in the now liquidated Irish Bank Resolution Corporation and Irish Nationwide banks; if he will clarify if these mortgages will be sold on to other financial institutions; if family household mortgage holders are being treated differently from companies with commercial loans from IBRC; and if he will make a statement on the matter. [10558/13]
View answerI am advised that the contractual terms and conditions of customer mortgages and other borrowings will not change as a result of the appointment of the Special Liquidators and all debts owing to IBRC will remain due and enforceable. It is important that, to avoid breaches of their obligations, customers continue to make payments on their loans and otherwise honour the contractual obligations of their borrowings. I am informed that it is the intention of the Special Liquidators to package and sell the mortgage book as a portfolio. Borrowers, third parties and other financial institutions will be given the opportunity to bid for specific portfolios (or component parts thereof) as part of an open and transparent process which will see the assets valued independently before being sold. Any assets not sold to third parties (including loan counterparties and other financial institutions) at or above the valuation price will be sold to NAMA at the independent valuation. The Special Liquidators are still in the process of devising and implementing a sales process in respect of IBRC’s assets including the mortgage portfolio.
48. Deputy Michelle Mulherin asked the Minister for Finance if he will extend in the forthcoming Finance Bill 2013 the excise rebate scheme for road hauliers announced in budget 2013 to benefit passenger transport operators; and if he will make a statement on the matter. [10493/13]
View answerThe proposal to introduce an auto-diesel excise duty relief for licensed road hauliers that I announced in the Budget was, initially, confined to licensed and tax compliant hauliers. However having received a number of submissions from, and on behalf of, private coach operators seeking to have this relief extended to them, as the Deputy will now be aware I have extended the relief to the licensed passenger transport sector in the context of the Finance Bill published on 13 February. The maximum amount of the relief will be 7.5 cents per litre and will be price dependant.
