Let’s transfer lucrative tax measures - Long-term budgetary planning

With €1bn more in his pocket than he expected from taxes, Finance Minister Michael Noonan might be tempted to play the old game of auction politics, a political ploy which has cost the Irish economy dearly in the past. Fortunately, as a politician he tends to err on the side of caution, and knows what a blunder it would be.

Understandably, following years of tight-fisted austerity, people are hoping for a more open-handed approach in next month’s budget, especially since their hopes were raised by spin from several government ministers, including Mr Noonan himself who started the ball spinning. Despite the popular sense of anticipation, the bottom line must be that he should do nothing that puts the economy at risk.

Taken at face value, the minister’s proposal to introduce long-term budgetary planning, as aired on Seán O’Rourke’s RTÉ radio programme yesterday, would be a welcome departure from the era of nod-and-wink politics. He hopes to go beyond the boom-and-bust scenario, not only by adopting a cautious approach to Budget 2015, but by planning three or even four budgets ahead. Not alone would that help to stabilise the economy, it would also get away from the reckless tactic of auction politics. Long discredited, though sure to garner votes, it has invariably led to economic misery.