Economic growth of 3% this year and in 2015

Finance minister Michael Noonan has told a gathering of Fine Gael parliamentarians that the parameters for the budget had not yet been set, despite ongoing speculation.

Mr Noonan was speaking at the first session of the Fine Gael think-in at Fota Island resort, ahead of the beginning of the new Dáil term.

Earlier, he told reporters that the economy would grow by 3% in 2015, an upgrade that follows on from a fall in unemployment below the EU average and a rise in retail sales and exports.

“The Department of Finance official figure for 2014 is we’re going to grow just ahead of 3% and next year we’ll be around 3% as well,” he said.

He told the media that he would be instructing members to look at ideas to grow the economy and jobs, but to do so outside considerations for what might be popular at the next election.

Taoiseach Enda Kenny also signalled Fine Gael’s intention to fight the next election on the basis of the party’s record on the economy. “Who do you trust to manage economic affairs?” he asked rhetorically in an address to the media.

“Which party do you trust to run the economy? Fianna Fáil and Sinn Féin, who are now in the same position?” He went on to describe Fianna Fáil as a “tax and spend” party which couldn’t be trusted.

In the closed session with parliamentarians, Mr Noonan delivered a 10-minute address in which he stressed that prudence must be observed in the forthcoming budget. He also noted that “the figures are good”, according to one source at the meeting.

After Mr Noonan’s address, the parliamentarians broke into groups to discuss ways in which the budget could be framed to take consideration of the recovery, while being cognisant of the dangers of an expansionary budget. Among the topics discussed were ways to embed economic gains, while at the same time tackling major issues like housing and jobs growth.

The format of generating feedback from the parliamentarians differs from previous think-ins, where the emphasis was on bringing in economic experts to address the members on what was required in economic terms.

Later in the afternoon, a second session on health was led by minister for health Leo Varadkar under the theme “putting the patient at the heart of the health system”.

Two more sessions are scheduled for this morning, one on the economy, and another on electoral strategy, before the conference is closed by a press conference hosted by Enda Kenny.