THE GOVERNMENT should publish a document prepared by the Expenditure Review Committee led by economist Colm McCarthy at the earliest opportunity. No good purpose can be served by keeping the thinking behind proposed cutbacks confidential. The greater the transparency involved in this process, the better chance there is of securing a reasoned public debate and an equitable outcome.
Of course the document is politically sensitive. Its recommendations – some of which have been “leaked” – have already attracted condemnation from some vested interests and Opposition parties. But the document isn’t prescriptive. All of its recommendations do not have to be implemented. It is expected to identify potential annual savings amounting to €7 billion, while the Government is committed to cutting expenditure by €4 billion in the December budget.
Another piece of the fiscal jigsaw, a document from the Commission on Taxation, is due to be completed later this summer. During the past 16 traumatic months, representatives of the social partners serving on the commission have considered how our taxation system could be made more equitable and stable. Among other things, the document is likely to suggest a restructuring of property taxes and the introduction of a carbon levy.
It has been suggested that publication of these documents could present “too many options” to the electorate and “poison” the Lisbon referendum debate. That is the kind of patronising “Nanny State” approach beloved of senior civil servants. It is highly corrosive of communal trust. There is no longer any doubt in people’s minds about our financial difficulties. They know all about the deficit in the public finances. They realise the shortfall must be plugged if we are not to bequeath decades of debt-servicing to our children.
Withholding these documents until after the referendum in October cannot be justified. The Government has invested a great deal of time and energy in securing specific assurances from other EU States that address public concerns. They should stick to that strategy. The referendum will bring the main Dáil parties together in common cause. A similar approach would help economic recovery. But it will not happen unless these documents are made available and there is open, public debate on the way forward. Cabinet members will make the final, difficult decisions, but such measures stand a better chance of being accepted if, after due consideration, they are seen to be fair and appropriate.