asked the Minister for Finance if he supports the decision of the EEC Finance Ministers of 28th June, 1973, to cut back Government public expenditure; and, if so, the proposals he has in mind in this regard.
Ceisteanna—Questions. Oral Answers. - Government Financial Policy.
121.
It is not correct to say that the EEC Council Resolution of 28th June, 1973, called for a cutting back of Government public expenditure as far as Ireland is concerned.
The opening paragraph of the resolution recognises the position of those countries in which capacity utilisation is not already high, and recommends that in such cases the rate of expansion of overall demand should not become excessive. Ireland is specifically included in this group of countries.
In regard to fiscal policy, the recommendation for 1973 in the case of Ireland is that the budget policy measures to stimulate the economic upswing should be implemented in a way which will not jeopardise the moves to moderate price increases.
In a recommendation on fiscal policy for 1974, addressed to all member states, the resolution urges that the rate of growth of expenditure foreseen in the draft budgets for 1974 should be moderated. Ireland's position in this regard was made clear to the Council. In the case of other member countries, the recommendation for 1974 was based on preliminary draft budgets furnished by member countries. In the case of Ireland it was explained that, because this year's budget was later than usual, we were not in a position to supply even tentative figures for 1974, so that it was not possible to form even a preliminary view regarding fiscal policy for that year. This position was fully accepted by the Council, and it was not necessary to seek a formal amendment of the resolution on this point.
I might recall that the Organisation for Economic Co-operation and Development in their 1973 annual review, in considering alternative forms of desired stimulus for our economy, selected faster rates of government expenditure as an appropriate source. Current budget policy reflects this view.
122.
asked the Minister for Finance the manner in which the Government propose to co-ordinate its financial policies in order to comply with the resolution of the EEC Finance Ministers of 28th June, 1973.
I am satisfied that existing arrangements for co-ordination of financial policies are adequate to meet EEC requirements.