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Fiscal Policy

Dáil Éireann Debate, Thursday - 19 November 2015

Thursday, 19 November 2015

Questions (77, 78, 80, 81, 82, 84, 85)

Bernard Durkan

Question:

77. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he remains satisfied that sustainable economic targets remain attainable, given the need to remain competitive nationally and internationally in the aftermath of the economic downturn inherited from his predecessors; and if he will make a statement on the matter. [41082/15]

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Bernard Durkan

Question:

78. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects the measures that he announced in budget 2016 to continue the economic recovery and achieve the objectives set out; and if he will make a statement on the matter. [41083/15]

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Bernard Durkan

Question:

80. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects the relaxation of budgetary restrictions imposed by the troika to manifest themselves in the context of increased demand and restructuring of the economy, and other steps taken in the context of budget 2016, by way of significant improvements and opportunities likely to emerge in the next two years; and if he will make a statement on the matter. [41085/15]

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Bernard Durkan

Question:

81. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he remains satisfied that future Governments will not be allowed to undo the benefits accrued from the economic sacrifices made by the Irish people in the past seven years; and if he will make a statement on the matter. [41086/15]

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Bernard Durkan

Question:

82. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that he and his colleagues' efforts in relation to public expenditure and reform will continue to remain the guiding principles of management of the economy in the future; and if he will make a statement on the matter. [41087/15]

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Bernard Durkan

Question:

84. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he continues to monitor the performance of all Departments and bodies under their aegis, with a view to ensuring the maximisation of the benefit achieved through the sacrifices of the Irish people in the course of the economic recession, with particular reference to the need to ensure continued economic good practice in the future; and if he will make a statement on the matter. [41089/15]

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Bernard Durkan

Question:

85. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which each Department and its subordinate bodies and agencies have continued to meet their objectives in the course of the efforts towards economic recovery and full employment in the future; and if he will make a statement on the matter. [41090/15]

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Written answers

I propose to take Questions Nos. 77, 78, 80 to 82, inclusive, and 84 and 85 together.

The broad programme of measures delivered in the area of public expenditure and public sector reform has and undoubtedly will continue to support sustainable economic growth and improved competitiveness.

For example, creating the necessary conditions to encourage growth in employment has been a key priority of this Government. The latest figures in relation to the unemployment rate show that it has been reduced from a peak of 15.1% in February 2012 to 8.9% in October this year The fiscal strategy underpinning Budget 2016 is designed to encourage continued sustainable economic growth and increase investment in public services in order to promote further employment growth. Increased employment results in more resources being available to deliver public services.  It is of course important to ensure that those resources are being allocated to best effect. The range of reforms that have been introduced by my Department to the budgetary cycles and processes help to support the efficient use of public funds to deliver effective services for citizens. 

In addition, Budget 2016 includes a significant measure in relation to childcare which has a clear potential to contribute to improved competitiveness and higher trend economic growth.  The Early Childhood Care and Education scheme is to be extended. Investment in childcare will have both social and economic returns.  It acts as a key labour activation measure, particularly for women allowing those who wish to work to take up work and it improves educational and social outcomes, by providing our children with the best possible start. In relation to capital expenditure, the Capital Plan recently published by my Department prioritises spending on those areas of greatest need as the economy continues its strong recovery.  

My Department has played a key role in ensuring Ireland met or exceeded its key fiscal targets in each year of the EU/IMF programme of financial support resulting in a successful exit from the programme in December 2013. Furthermore, as a result of the fiscal policies of this Government and the efforts of the Irish people, Ireland is due to exit the corrective arm of the Stability and Growth Pact (SGP) at the end of this year. With this improved fiscal position the Government has been able to implement increases in expenditure this year and to target further increases in 2016.

When framing Budget 2016 the Government was conscious of the need to continue to address the challenges that face Irish families. Our aim is to ensure that recovery is felt in every home and in every community across the country. With this in mind, resources were provided to allow for significant measures to be implemented across a number of sectors. An additional 2,260 teaching posts will be provided for in 2016 to cater for additional students, improve the staffing schedule and meet special education needs. A package of social protection measures was also introduced to protect some of the most vulnerable in society with increases in the State Pension as well as increases to Child Benefit and the Carer's Support Grant.

With Ireland moving to the preventive arm of the SGP in 2016, sustainable expenditure policy will be anchored in the future by adherence to new fiscal rules which aim to help ensure Ireland makes progress towards its Medium Term Objective (MTO) which is a balanced budgets in structural terms. The Expenditure Benchmark, a complementary measure under the SGP, is designed to regulate the growth in public expenditure in line with the medium term potential growth rate of the economy, thereby making sure that the level of spending is sustainable and can continue to be supported by the economy. 

As the economy continues to recover we will look to build upon and intensify the significant and wide-ranging public service reforms implemented over recent years. These have added efficiency and effectiveness to the way in which our public services are delivered and will continue to play a key role in supporting the rebalancing of the public finances and releasing further funds for reinvestment in key public services in a manner consistent with continuing to meet our SGP obligations. 

Managing the delivery of public services within Budgetary allocations is a key responsibility of each Minister and their Department, and important measures are in place to help ensure that these budgetary targets continue to be met.  My Department is in regular communication with all Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. The drawdown of funds from the Exchequer is monitored against the published expenditure profiles. There is regular reporting to Government on these matters, and information is published monthly, as part of the Exchequer Statement.  

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