Fianna Fáil Spokesperson on Finance, Michael McGrath, has said the Government needs to realise that a house building boom is not the answer to the over reliance in the public finances on volatile corporation tax receipts.
Deputy McGrath made his comments in response to a claim by the Taoiseach that tax receipts from home building could make up for a possible shortfall in corporation tax receipts in the future.
Deputy McGrath explained, “After all that we have been through, it is extraordinary that the Taoiseach seems to be suggesting that something of a house construction boom may be necessary to plug the hole in the public finances that a falloff in corporation tax could leave.
“The Government doesn’t seem to understand that making permanent expenditure commitments on the back of receipts that could prove temporary is leaving us very exposed – that applies to stamp duty receipts as it does to corporation tax from multinationals.
“The Government have been warned time and time again against depending on corporation tax receipts as they are neither stable nor guaranteed for the future.
“This year alone we have witnessed massive overspends on projects like the National Children’s Hospital and the National Broadband Plan. The Department of Health’s budget been breached significantly.
“Fine Gael is adept at throwing accusations at Fianna Fáil. It is past time they had a good look in the mirror and recognised the risks they are taking with their approach to managing the public finances,” concluded Deputy McGrath.