Opposition Accuses Irish Government Of Cooking The Books

by Jason Gorringe, Tax-News.com, London

05 April 2002

Opposition parties have accused Irish Finance Minister, Charlie McCreevy of 'cooking the books' following the release of exchequer figures on Wednesday.

The latest figures show a surplus of 600 million euros for the first three months of this year. However, opposition parties Fine Gael and Labour have suggested that with tax returns slipping and government spending running ahead of target, the true amount is likely to be in the red, and have accused Mr McCreevy of massaging the figures in the run-up to the general election.

The Finance Minister attracted controversy when he announced in his last Budget that he would be transferring 635 million euros from the Insurance Fund to the Exchequer. Critics have suggested that this move, compounded by the fact that the entire amount was transferred in the first quarter, rather than throughout the year, is likely to have had the effect of making government books look a lot more attractive than they actually are.

250 million euros were also drawn from Central Bank earnings on the issue of coins earlier this year.

Fine Gael and Labour have been vehement in their criticism of Mr McCreevy, with FG spokesman, Jim Mitchell, accusing the Finance Minister of practicing 'accounting tricks which transferred 885 million euros during the quarter,' and Labour Finance spokesman, Derek McDowell, commenting that the Minister had: 'cooked the books, just as on Budget Day.'

However, the Finance Minister defended the government figures this week, predicting that the Irish economy is on the road to recovery, and explaining that: 'A number of tax measures in the Budget, including VAT and corporation tax, have yet to be reflected in extra revenue.'

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