Update: Encouraging Economic Growth 10th July 2014

QUESTION NO:  8
DÁIL QUESTION addressed to the Minister for Public Expenditure and Reform (Deputy Brendan Howlin)
by Deputy Bernard J. Durkan
for ORAL ANSWER on 09/07/2014 

 To ask the Minister for Public Expenditure and Reform if he will indicate, based on the achievement of the various economic targets set in respect of public expenditure and reform for the current year, the degree to which he expects to be in a position to encourage economic growth in the context of his preparation for Budget 2015 with a view to positively impact on the domestic economy; and if he will make a statement on the matter.
 
REPLY.

In setting Budgetary allocations, the Government balances the requirements of bringing sustainability to the public finances, promoting and supporting economic recovery and protecting the most vulnerable in society. 

The Government’s overall fiscal target for next year is to reduce the General Government Deficit to below 3% by end 2015. The scale of the adjustment required to meet this target will be decided by Government in the context of the Budget, based on the most up to date economic and fiscal data at that time, and with a view to achieving the overall fiscal target while encouraging growth in the economy.  In this regard, the most recent economic information is very encouraging.

I announced at Budget time that our second 3-yearly Comprehensive Review of Expenditure would be carried out this year. This review is underway and will be a focused examination of expenditure by all Departments, taking account of Government spending priorities in order to identify areas of potential savings and efficiencies.  In parallel, a separate Review of Capital Expenditure is also being conducted with a view to realigning future investment priorities and to reset the medium-term capital envelopes for the next five years.

Targeting capital investment on projects with a high employment impact can benefit local economies throughout the State. To this end, since July 2012, I have made a series of announcements in relation to additional capital investment as part of a stimulus package to help support investment in infrastructure and jobs. These projects are spread around the country in order to create economic activity and employment on a regional basis.

Public Service Reform has been a key element of the Government’s strategic response to the economic crisis and is a central theme in the Programme for Government. The Public Service Reform Plan 2014-2016, published in January this year, contains a detailed action plan with clear timelines. Public procurement is a key area of reform. In carrying out reforms in this area, the Government is committed to ensuring that SMEs are encouraged to participate in procurement opportunities and to maximising the social benefits, such as employment and training opportunities, that can be delivered under public contracts. The implementation of measures in the Public Service Reform Plan relating to SME access to public procurement can facilitate growth within this sector.