Govt talks: Raising taxes must remain on the table - Irish Fiscal Advisory Council

Government talks will continue between Fianna Fáil, Fine Gael and the Green Party this morning.

The negotiating teams from all three parties will hold discussions but policies on carbon emissions remain a sticking point.

Fianna Fáil and Fine Gael have also written to the Labour Party asking it to consider engaging in government formation talks.

The new chair of the Irish Fiscal Advisory Council, Sebastian Barnes, has warned political parties negotiating to form a government that tax increases will have to remain on the table and that "hard decisions" will have to be made to help the country’s economy recover post the pandemic.

“With all the uncertainty, no one is in a position to make such a comment (about not raising taxes),” he told RTÉ radio’s Morning Ireland.

At present the government is focused on the emergency phase, but over the longer period, in the next five years, it is likely that the question will have to be asked whether taxes need to go up, he said.

“It is important to keep these options on the table rather than take them off. It is important to have a strong tax base.”

It would also be important to “have a really good look at the tax system” he added as there was scope for efficiencies in many areas.

On the topic of the pension age, Mr Barnes said it was a “huge issue” as it would cost €600 million every year if the pension age was not increased.

“It is important for the government to keep all options on the table. Some hard decisions will have to be made.”