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Social Democrats challenge Govt to come clean on fantasy fiscal space figures

The Social Democrats have challenged the Government on what they describe as ‘Fine Gael's Fantasy Fiscal Space’. This follows the Irish Financial Advisory Council’s intervention that the space was more in the region of €3.2bn.



Co-leader Stephen Donnelly TD said today, “Fine Gael / Labour are promising US-style taxes and European level investment - this is a false promise, and it's been blown out of the water by IFAC. Fine Gael / Labour's auction politics is based on there being €12bn available for tax and investment options. But we now hear from IFAC that it's more likely to be a little over €3bn - about one quarter of what the government thinks.



"IFAC was set up specifically to keep an honest and independent eye on government economic forecasts - it seems they're doing their job very well. If IFAC is right, then the total space available is actually a billion less than the USC brings in. So if Fine Gael / Labour abolish the USC, not only will they have no funds for additional investment, they'll actually have to reduce investment by €1bn.



“Prof McHale of IFAC made it clear over the weekend that the resources available between 2017 and 2021 may be less than previously estimated and that, due to demographic pressure and existing benefits commitments, it could be as low as €3.2bn.”



“The Government have been at sixes and sevens on this one – and yesterday Tanaiste Joan Burton confirmed this when she seemed to have a completely different view of what would constitute a Stability Fund.”





1st February 2016



ENDS



INFORMATION



Stephen Donnelly TD 086 051 3493



Steve Rawson – Social Democrats Press Office 087 235 7551

@socdems