Dáil Éireann Debate, Tuesday - 7 October 2014
180. Deputy Stephen S. Donnelly asked the Minister for Finance the contribution made by the Irish Fiscal Advisory Council since it was created in July 2011; the planned cost of the council for 2014; his plans to abolish the council in view of the consistent rejection of its advice in the three years since it was created; and if he will make a statement on the matter. [38001/14]
View answerThe Irish Fiscal Advisory Council was established in 2011, and became a statutory body when the Fiscal Responsibility Act 2012 came into force on 31 December 2012.
Since the establishment of the Irish Fiscal Advisory Council, the Council has published six Fiscal Assessment Reports, all of which can be found on the Fiscal Council's website. I respond to these reports, usually in my next fiscal policy publication or by letter if there is a large gap between the last Fiscal Assessment Report and my next fiscal policy publication. My responses can be found on the websites of the Council and my own Department. The establishment of the Council has strengthened the fiscal governance of the country and its reports have widened and deepened the debate on fiscal policy. The analytical work of the Council has been so far of a high quality and generally provides useful insights for policymakers. I have full confidence in the Fiscal Council and have no intention of abolishing it.
Furthermore, the Deputy should be aware that the Council fulfils a number of key statutory roles in Ireland's compliance with the Stability and Growth Pact (SGP) and the Fiscal Compact. In relation to the latter, it is the independent institution responsible at national level for monitoring our observance with the balanced budgetary rule. With regard to the SGP, it is responsible for considering and endorsing the macroeconomic projections upon which our fiscal planning is based. These functions have been given to the Council by the Oireachtas in the Fiscal Responsibility Acts 2012 and 2013.
The Fiscal Council have also published a number of other papers, including a Pre-Budget paper on 22 September which set out its opinion of what quantum of consolidation should underpin the Budget 2015 package. My position continues to be that the achievement of fiscal targets as set out in the Excessive Deficit Procedure (EDP) should remain the key anchor for fiscal policy. Since 2011 policy has been consistently framed in order to achieve these targets, and they have been met or exceeded for every year since. The overall fiscal stance to underpin Budget 2015 will be designed to ensure that the target is met in 2015 as well.
With regard to costs in 2014, there is a ceiling of €820,000 for the Fiscal Council, which is protected by legislation and is indexed to consumer prices. However, to facilitate payments from the Central Fund, the Fiscal Council provided projected costs for 2014 to my Department. The projected costs provided by the Council for 2014 are €732,020. This sum is broken down as follows; Pay - €384,955 and non-pay - €347,065.
