An open forum to consider pay, tax and overall spending priorities could be established by the summer under proposals from Minister for Public Expenditure Brendan Howlin.
Mr Howlin said such a forum would allow for greater consideration of where resources should be spent as the economy recovered. The move would be part of the Coalition’s new process of “national economic dialogue”, which sources insist is not a return to full-blown social partnership.
Senior Coalition figures say such a forum is likely to take place in open sessions over a set period, and would not be a return to the behind-closed-doors talks of the social partnership era.
A new office for budgetary statistics may also be established in order to try to ensure proposals from lobby groups or the Opposition can be fully costed as part of an overhaul of the budgetary process. However, it is unclear if this can be put in place for next October’s budget.
The Coalition envisages the new budgetary process being made up of four parts: a new “spring statement” setting out economic strategy; the forum initiative in or around June; an assessment of proposals, including the Government’s, later in the summer; and finally the budget itself in October.
‘Societal debate’
"There has to be an inclusive, societal debate about what a functioning modern economy looks like," Mr Howlin told The Irish Times.
“Where are the pressure points? How do we address the issue of childcare into the future?
“And to have all those arguments and all those positions presented in a coherent way and mediated by somebody other than Government.
“As we now start to grow, and have the capacity to spend a little more, I think there is a political imperative that everybody, politicians of all hues, but everybody in society as a whole, is entitled to be heard.
“Not only the political parties but all the sectoral interests: employers, trade unions, groups who are advocating expenditure in an area, to have an opportunity, not only to present their case but to have that analysed, have that stress-tested and then see where that would fit in the totality of a modern, in my view, social democratic society.”
However, he made clear the Government would make the final decisions, adding: “That’s what we were elected to do.”
Parameters
In the spring statement, Mr Howlin and Minister for Finance Michael Noonan will set out how much the Coalition believes it will have to spend in the years ahead, and will challenge the Opposition to accept or reject its parameters.
Taoiseach Enda Kenny has indicated it will not be a budgetary statement but will outline the broad direction of progress and strategy in areas such as tax, jobs and banking. Mr Howlin said the issue of tax was likely to be dealt with after the spring statement.
He said requests for increased spending in areas such as homelessness should be put into the context of the capacity of the State to fund different services.
“I’d like to have a forum where everyone is allowed lay out their case and make a rational bid for resources and everyone can do it in a joined up way knowing the quantum of resources we have as a society, and will have because we are doing a three-year horizon.
“And for that objectively to be done rather than every bid to be put as a priority of the day without contextualising.
“There is no doubt we cannot discuss expenditure in isolation. There has to be a position paper on taxation as well.”
