Dara Calleary
Ceist:192. Deputy Dara Calleary asked the Minister for Finance his policy on improving consumer confidence; and if he will make a statement on the matter. [37429/12]
Amharc ar fhreagraTuesday, 18 September 2012
Ceisteanna (192)
Freagraí scríofa
The Government considers that the best means to improve consumer confidence is to restore sustainability to the public finances, repair the banking system and improve competitiveness. Effectively addressing these three areas will result in increased employment, investment and consumer spending and will be key in driving this country forward. Looking more specifically at what the Government is doing to restore sustainability to the public finances, we have met all our fiscal targets to date and are on track to meet future targets under the Programme of External Financial Assistance. Furthermore, the Deputy will be aware that in the Medium-Term Fiscal Statement, the Government set out the required fiscal adjustment path over the medium term. This will provide Irish citizens with greater certainty regarding the magnitude of future budgetary adjustment measures and, in so doing, will help to improve confidence among households.
In terms of repairing the banking sector, the Irish banking system has been recapitalised to a very high level and has undergone significant restructuring to make it fit for purpose. The Government has imposed lending targets on AIB and Bank of Ireland for the three calendar years, 2011 to 2013. Progress on these lending targets is monitored by the Credit Review Office (CRO) and by my Department. Additionally, the CRO ensures that the pillar banks do not refuse credit to viable businesses, both by its existence and by offering the right to a review of refusals.
Competitiveness is improving and this is feeding through to exports and higher inward Foreign Direct Investment. Earlier this month, the CSO published revised outturn figures for 2011 which confirm that growth resumed in the Irish economy last year with GDP increasing by 1.4 per cent, which is stronger than previously thought. Most forecasters also expect positive growth this year, with exports leading the way.
The Government is acutely aware of the headwinds which the domestic economy faces. We have, therefore, taken a number of steps to support domestic activity and job creation, including the introduction of the Jobs Initiative shortly after coming into office and the structuring of Budget 2012 in such a way as to be as growth-friendly as possible. I would also note that the latest KBC/ESRI Consumer Sentiment Index for August shows a third consecutive increase in the index, which is at its highest level for about five years. Overall, we have seen that Government policies, both domestic and at EU level, are helping to improve confidence among consumers and investors.