Government Statement
The Government this morning reviewed the economic and fiscal situation.
After an unprecedented period, in economic terms, when Ireland caught up
with, and indeed surpassed, many of its fellow European nations, it is now
facing an unprecedented set of unfavourable international factors including
turbulence in global financial markets, faltering economic growth in the
major economies, exchange rate shifts and the sharp rise in commodity
prices. These conditions are placing the Irish economy under considerable
pressure. Domestically we are also faced with a contracting construction
sector which is suppressing economic growth rates and a rising cost base is
eroding Ireland’s competitiveness. In addition, the slowdown has resulted
in a rapid deterioration in the public finances and falling consumer
confidence.
The emerging scale of the economic and fiscal and environmental challenges
now facing the country require that the Government take the necessary
decisions to ensure stability in the public finances, while giving firm
support for those aspects of the economy which are continuing to perform
strongly, and ensuring that Ireland benefits as early and as fully as
possible from improved international economic conditions.
Accordingly, the Government have decided that the Minister for Finance will
present his Budget for 2009 on Tuesday, 14th October. This will reflect
the necessary prioritisation of expenditures in the light of expected tax
revenues. As such, it will give clarity and confidence to investors and
taxpayers alike, and provide a sound basis for economic recovery.
The Government are committed to giving clear leadership in the context of
the strategic priorities of the Programme for Government in order to boost
confidence in the underlying strength of the economy, to encourage faster
development in key sectors to protect the environment and to build
sustainable competitiveness in the economy as a whole. Accordingly, the
Government will prioritise those capital investments within the framework
of the National Development Plan and the Programme for Government which
most support those objectives.
Ministers are developing specific initiatives which would serve to advance
those objectives by encouraging investment and activity and deepening
Ireland’s competitiveness. Details of these initiatives will be announced
in the weeks and months ahead.
The combination of fiscal and economic policy decisions will set out a
comprehensive approach to ensuring that Ireland remains on course for
sustainable economic and social development in the context of the long-term
objectives agreed with the social partners in Towards 2016 and reflected in
the Programme for Government.
The preparation of specific policy measures, the Estimates process for 2009
and the taxation measures to be included in Budget 2009 are already well
advanced. They will now be accelerated and will take account of the
outcome of discussions with the social partners and with other key
stakeholders.
Commenting on the Government’s decision to bring forward the date of Budget
2009 from December to the 14th October 2008, the Minister for Finance, Mr.
Brian Lenihan, T.D. said:
“When we brought forward our savings initiative last July, I pointed out
that this initiative was a first step in our response to our current
economic difficulties. The Government also made it clear that additional
economies would be required in the event that the fiscal position
deteriorated further. Over the summer, we have been implementing our
savings package and monitoring the emerging economic position.
Weaker international conditions including slower growth and the impact of
the credit crisis, combined with the developments in the housing market in
Ireland, are having a major impact. The public finances are under
considerable pressure as a result and, based on the latest information
available, a tax shortfall of at least €5 billion for 2008 is likely at
this stage.
In the Budget, I will set out steps to stabilise and restore balance to the
public finances by amongst other things prioritising current and capital
public expenditure to reflect the changed realities.
Through sensible and balanced management of the economy, this Government
has ensured that the people of Ireland enjoy living standards that are
among the highest in Europe. The Government is moving to protect the gains
that our country has made by ensuring responsibility in the public
finances.
Taking decisive action now is critical to our future sustainable growth.
We are better placed than most economies to meet the challenges ahead with
our low debt rate, our educated and young workforce, and our low tax
environment for workers and business. We are also undertaking the largest
public investment programme in Europe. The Government will ensure that our
economy is in the best possible position to resume trend growth as soon as
international conditions improve”, concluded Minister Lenihan.
Image via WikipediaI can't go to this next week but its always good to do some promo work. :-)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=d4e794e7-78bd-44cb-8f1e-5079332f9e75)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=a131af4d-e1aa-40b1-8381-fbe27e9e668d)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=a17de304-26e2-4a58-b0de-f56e541a5259)
