Charlie McCreevy Speaks At PPF Plenary Meeting

by Jason Gorringe, Tax-News.com, London

04 November 2002

Speaking at the Programme for Prosperity and Fairness (PPF) plenary meeting on Thursday, Irish Finance Minister, Charlie McCreevy detailed the many demands which have been put to the government by various social campaigning groups prior to the commencement of talks on a successor to the PPF, and outlined his economic objectives for the future.

Commencing his statement at Dublin Castle last week, Mr McCreevy observed that: 'The economic and budgetary background to the current talks on social partnership is very different to that prevailing when the PPF was agreed.'

'The boom is over. Economic growth this year has slowed markedly...The outlook for 2003 is not much different and the average growth rate for the period 2003 to 2005 is likely to be in or around 3% and 4% in terms of GNP and GDP.'

Revealing that tax revenues in Ireland, especially in the corporate sector, have fallen below target this year, the Finance Minister stated that the first priority for the government must be to get back to a sustainable rate of spending growth, although he stressed that given the significant increases in expenditure during the jurisdiction's boom period, this will not result in spending cuts, or low expenditure levels.

He revealed plans to meet with all of the Social Partners on Friday to discuss their pre-budget submissions, but warned that it is unlikely that all demands will be met, observing that the government has recently been urged to 'increase spending in many key areas, increase taxes, especially on the well off and companies, don't raise taxes, go ahead with pay increases, don't go ahead with pay increases'.

Concluding his speech last week, Mr McCreevy told the PPF plenary meeting that: 'In short, we need realistic expectations and sensible discussions in the choices we face to ensure continued and sustainable growth and to deliver efficient and effective public services.'

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