Micheál Martin
Question:163. Deputy Micheál Martin asked the Minister for Finance if he has received the recent report from the Irish Fiscal Advisory Council. [50474/18]
View answerTuesday, 4 December 2018
Questions (163)
Written answers
I assume the report the Deputy is referring to is the Fiscal Assessment Report (FAR) published by the Irish Fiscal Advisory Council on Wednesday 28 November. I have received it and would make a few points on same.
I note the Council's endorsement of my Department’s economic forecasts for 2018 and 2019 that underpin the Budgetary arithmetic. I would also draw attention to the fact that, last month, the European Commission assessed Budget 2019 as being compliant with the fiscal rules, a welcome endorsement. I also note the Council's assessment of the risks facing our economy, including possible overheating, residential building activity, the reliance on highly concentrated foreign-owned activities and, last but by no means least, the potential impacts that Brexit may have. My Department has also identified these risks in the Budget documentation (Economic & Fiscal Outlook, pp. 43-44) and I share both of these assessments.
The best way to mitigate these risks is to carefully manage the public finances and to ensure our economy remains competitive. That is what the Government has done in the Budget through the elimination of the headline deficit, reduction of the general government debt ratio and the establishment of the Rainy Day Fund.
I acknowledge the Council’s assertion that Ireland’s debt burden remains high. My Department publishes an Annual Debt Report to highlight this issue and I want to reiterate that reducing public debt is a key priority for the Government. It is oft-stated Government policy that windfall receipts from any future sale of state assets will be used to reduce the debt burden.
Finally, it should be noted that I am in the process of drafting my formal response to the FAR which will be published in due course.