Government not bound by Fiscal Advisory Council report

Taoiseach Enda Kenny has said today that the government will not be bound by a new report from the Fiscal Advisory Council (FAC) urging it to deliver harsher budgets over the next three years.

Mr Kenny went on to say that the government will consider the council’s latest report, which recommends making an extra €1.9bn worth of cuts and tax increases, above what is already planned.

The FAC said that making the additional adjustment would provide extra insulation for the economy against future financial shocks.

“This is an independent report from the Fiscal Council,” he said.

“Obviously it’s not binding on Government, but Government can reflect upon any issues in there that it might consider appropriate.

“I would say however that the medium-term programme set out by Government is one that has the support of our funding partners.”

Mr. Kenny went on to say that while the Government will reflect on the report, it has medium-term targets to reach.

“What we want is to maximise savings to minimise cuts,” he added.

Mr. Kenny congratulated the NTMA on its sale of short-term finance, saying its work had been extraordinary and significant.

“This is all part of a process of rebuilding our reputation and rebuilding trust,” said Mr Kenny.

“And we are demonstrating that as a Government and as a people that this country recognises that it faces challenges itself.”