€481k for watchdog that will be ignored
The money goes on the Fiscal Advisory Council which was set up after the financial crash by the Fine Gael-Labour Coalition in order to provide an independent voice for Government in economic matters.
However, when the council advised that next month’s Budget should be a tough one containing €2bn worth of tax hikes and spending cuts, ministers signalled they would not heed the advice.
The council insisted such action was needed due to the scale of the national debt and because of fears that if strong action was not taken now, it would leave the economy vulnerable to future shocks such as another recession.
Cabinet members insisted that the advice would be considered, but it was down to the Government to make decisions, as they insisted they would not raise taxes without good reason.
The cost of the council is revealed in the annual report of the Comptroller and Auditor General (C&AG) which also notes that the national debt has rocketed from €173.9bn in 2013, up from €137.6bn the previous year.
The liquidation of the IBRC, the former Anglo Irish Bank, in February 2013, saw the amount of monies paid out under guaranteed claims totalled €998m at the end of last year. For the first six months of 2014, payments amounted to €61m, the C&AG reveals.
The report states that payments made by the State Claims Agency for personal injury, property damage and clinical negligence claims amounted to €1.2bn in 2013. This represents an increase of €100m over the previous year. The C&AG found that the National Pension Reserve Fund stood at €19.9bn at the end of last year.
The C&AG concludes that the National Treasury Management Agency (NTMA) does not disclose the full costs of its different services and functions in some areas, and notes this: “is not consistent with the movement that is occurring more generally”. The NTMA responded that it discloses costs in accordance with its statutory obligations.
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