MINISTER FOR Finance Brian Lenihan has revealed he is considering establishing a body responsible for budgetary matters.

He was replying to acting Fine Gael finance spokesman Kieran O’Donnell who said the UK government had established an office for budgetary responsibility, which had clearly bolstered confidence in the bond markets.

Mr O’Donnell said Fine Gael had suggested that an independent fiscal council, similar to the UK office, should be established in the Republic. The same suggestion was contained in the Regling and Watson report.

“If a body of this nature had been in place previously, certain tax incentive schemes might have been curbed much earlier,” he added.

Mr Lenihan said he had asked the Oireachtas Committee on Finance and the Public Service to examine economic questions posed by Regling and Watson in their report. However, he said he was not sure whether they should pursue the UK’s example.

By virtue of Ireland’s membership of the euro zone and the EU, it was already under a surveillance obligation in the context of the Stability and Growth Pact, he said.

“It is true that the UK is under a similar obligation,’’ he added.

“However, it is interesting that during the discussions engaged in by the Van Rompuy taskforce, the UK representatives made clear their position that they do not perceive a need for any intensification of that surveillance.’’

Mr Lenihan said the title “fiscal council”, used by many, borrowed a view of the English language that was common in other EU member states. “However, I remain open to suggestions regarding what might be the appropriate title for such a council,” he added.

Asked by Mr O’Donnell if such a body would be established before the next budget, Mr Lenihan said it needed to be put in place by then.