Budget tops agenda as Dáil returns to work

Tax cuts are part of economic plan

Minister Leo Varadkar: due to give update on abortion controversy. Photograph: Dara Mac Dónaill

Cabinet business resumes this week as Fine Gael and Labour press to regain momentum in advance of difficult talks on next month’s budget.

With preparations for the 2015 fiscal plan the top priority, the Government meets on Wednesday for the first time in six weeks. Exchequer figures due for release tomorrow will provide fresh insight into the performance of the economy during the summer break.

Minister for Health Leo Varadkar will update colleagues on the Health Service Executive examination of the recent abortion controversy, but it is understood the young woman at its centre has yet to be interviewed by the review team.

Although the formal Cabinet agenda is said to be “slim”, the return to work comes amid efforts by both parties to put the problems which beset them before May elections behind them.

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Competence and coherence

Following the Cabinet reshuffle in July and the Labour leadership change, high-level Government sources say the key objective in coming months will be to project a sense of competence and coherence in work.

There are increasing signs of confidence in Government circles that economic growth this year will exceed the official Department of Finance forecast of a 2.1 per cent expansion in gross domestic product.

While a Government source said this projection “remains as it is for now”, any appreciable increase in growth would improve the fiscal position as Ministers work to settle the budget.

In question immediately is the degree to which the Coalition can ease the income tax burden. Ministers have resolved to introduce a tax-cutting plan for 2016 and succeeding years in the budget, to be unveiled on October 14th.

Following positive signals by Ministers during the holidays, the Coalition stresses there will be no giveaway. “This Government will take no decision that would put the recovery in jeopardy,” said the source.

A further question for settlement within weeks is the scope of “a revised capital investment programme for the remainder of the decade”, to be published alongside the budget.

At meetings next week in Italy, Minister for Finance Michael Noonan is expected to discuss early repayment of Ireland’s International Monetary Fund loans with his euro zone counterparts. The Government believes major savings can be made but a deal with the IMF needs European approval.

In relation to the abortion controversy, it is understood a HSE report could be weeks away. A young woman who said she was suicidal due to pregnancy after rape was refused an abortion by an expert panel set up under legislation enacted last year. It is understood the HSE review team plans to conduct an initial series of interviews between today and Wednesday with all involved. This includes an interview with the woman and her advisers.

Iarnród Éireann dispute

The Cabinet is expected to discuss the industrial dispute at Iarnród Éireann. A long list of justice issues is outstanding, including the terms of reference for the commission of inquiry into Garda malpractice complaints by Sgt Maurice McCabe.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times