Micheál Martin
Question:170. Deputy Micheál Martin asked the Minister for Finance his involvement and interaction with the fiscal council. [15602/16]
View answerTuesday, 14 June 2016
Questions (170)
Written answers
The Fiscal Council was established under the Fiscal Responsibility Act 2012, and it has a very specific mandate as a watchdog for budgetary planning and execution. While it is under the aegis of my Department, it is a fully independent voice that assesses the fiscal stance and assesses compliance with fiscal rules that Ireland signed up to under both the Stability and Growth Pact and the Fiscal Compact. In accordance with the "two-pack" EU regulations, an amendment to the Fiscal Responsibility Act 2012 in the Ministers and Secretaries (Amendment) Act 2013 assigned the function of endorsing, as it considers appropriate, the macroeconomic forecasts produced by my Department to the Fiscal Council.
The Council publishes two Fiscal Assessment Reports each year, following the Budget in the Autumn and the Stability Programme Update in the Spring. The reports assess the Government's macroeconomic and budgetary forecasts, the appropriateness of the fiscal stance, compliance with the budgetary rule, as well as detailing the Council's endorsement function. Following consideration of these reports by my officials and the Department of Public Expenditure and Reform, I respond publically to each Fiscal Assessment Report. While it is the case that I do not always share the Council's analysis in the Fiscal Assessment Reports, I very much value their expertise and their input as an independent voice in helping the Government to adhere to its own fiscal targets.
There are five members of the Council, including the Chair, and I have a role in appointing the members. In accordance with the "Guidelines for appointments to state boards" published by the Government in November 2014, the Public Appointments Service (PAS) manages an open selection process when a vacancy exists on the Board. Part of the open selection process involves a PAS-appointed advisory panel recommending candidates for appointment that are deemed to meet the published selection criteria. A list of these candidates is then submitted by the PAS for my consideration, following which I make an appointment to the Fiscal Council in accordance with the legislation.
Under the Fiscal Responsibility Act 2012, I approve the numbers of staff and their terms and conditions after consulting with the Minister for Public Expenditure and Reform. My Department facilitates the funding of the Council from the Central Fund in accordance with the Act. The Fiscal Council is required to give a copy of their annual accounts and their annual report to me each year and I am required under the Act to lay these before the Houses of the Oireachtas. I also have the power to appoint a person to examine the accounts of the Fiscal Council but this has not been needed to date.
I value the Fiscal Council's important role as an independent watchdog and, as indicated above, my interaction with the Council is only as required by its legislatively mandated role.