The new finance minister (39) told the Sunday Independent that prudence is needed in a time of “significant geopolitical turbulence and uncertainty”, signalling that there will no financial reprieve forthcoming for any families or households outside what was offered in the last budget.
He said windfall receipts from corporation tax will be used to address strategic infrastructure deficits, “never for the day-to-day, and we will continue to build up our long-term savings funds to help this country withstand future shocks”.
Tánaiste and Finance Minister Simon Harris pictured in his new office. Photo: Gerry Mooney
Today’s News in 90 Seconds – Sunday, November 23
“Should that shock come, I, and the Government, will always stick to two principles — we will continue to build and we will continue to protect our public services,” he added.
Data released by the Central Statistics Office shows the unemployment rate across the country has risen to to 5.3pc.
It is the highest rate of unemployment recorded since the third quarter of 2021 as Ireland emerged from the Covid-19 pandemic.
Minister Harris said one of his immediate priorities would be to finalise the medium-term fiscal framework which will “will outline how we intend to manage the economy in the time ahead in terms of spending levels and will set out key economic data and projections.”
Under new fiscal rules, Ireland is required to submit a plan to the European Commission setting out the planned rate of spending growth over the coming years.
“This will anchor our economy and our spending and taxation plans for the time ahead,” Mr Harris said.
“But it is also important in terms of providing clarity and certainty for ministers, government departments and agencies. It will help them to deliver on the programme for government commitments, drive reform of public services, invest in key areas and, crucially, assist working families with everyday costs.”
Paschal Donohoe and Simon Harris
Mr Harris succeeded Mr Donohoe last week after the former Fine Gael minister announced he was taking up the role of managing director of the World Bank in Washington DC, prompting a Fine Gael cabinet reshuffle.
The move by Mr Harris was widely seen as a bid to consolidate his power within Government and stave off any future challenge for the leadership of Fine Gael.
With proposals to speed up infrastructure delivery due to be brought to Cabinet in the coming weeks, the Tánaiste said the State has “got to cut down bureaucracy, remove red tape, and simplify regulation”.
He added: “Our current economic position should not be taken for granted and it is not an accident that we are in a situation where more than 2.82 million people are now in employment.
“It is not just prudent management of the public finances, it is a result of the work of people up and down the country.
“One of the most pressing issues I will be intensively working on in the days and weeks ahead is putting in place a plan for how we will manage the public finances over the next four years to ensure the protection of jobs and livelihoods.”