Govt must 'keep powder dry' in Spring Forecast

Minister for Finance and Tánaiste Simon Harris has said Ireland needs to "keep the powder dry" when it comes to economic planning, "for what could be a very difficult winter" ahead.

The Minister is to publish the Spring Economic Forecast tomorrow, which will include scenario planning around the impact the war in Iran will have on the Irish economy.

Mr Harris said that a balance will have to be struck and Ireland needs to make sure it has the "economic firepower to respond in the winter".

Speaking to reporters in Co Meath today, the Minister did not rule out further energy credits, saying it would be foolish to rule anything out, but said that a balance had to be struck.

"The Government has to take this step by step, because we've got to get the balance right.

The balance between trying to help people in the here and now, because it's tough for people.

That's why we took the decision to reduce the excise, diesel prices would have been a hell of a lot higher had we not have made that intervention.

Same for petrol.

It's why we put in place a package for farmers, for hauliers, for farm contractors," he said.

"We've got to make sure we have the economic firepower to respond in the winter to deliver a good budget, that can advance commitments in the programme for government, but also a budget that can help people if this crisis is continuing."
The Tánaiste said he understands the calls "that always exist to do more".

"We made a big intervention last week, one of the largest in the European Union.

But we also have to try to make sure we keep that powder dry for what could be a very difficult winter if this conflict is ongoing."
Mr Harris said that the "good news" is that the Irish economy is expected to grow in all the scenarios, "albeit at a slower rate in various scenarios".

The details of that scenario planning will be brought to the Cabinet tomorrow.

He said that "surplus can't become a derogatory term or dirty word" and "thank God we have one".

He said Ireland was able to make the €750 million intervention last week as a result of "sound economic management and the hard work of the Irish people".

The Minister said the publication of the Spring Economic Forecast tomorrow was an "important status update on what the period ahead could look like".

The Tánaiste also said he is "determined to make progress" on commitments around income tax in the next Budget.

Mr Harris said that the fact the Irish economy had built up "fiscal buffers" provides a "degree of protection", as long as the Government proceeds step by step.

Mr Harris said it was his view that there "has to be a personal income tax package in the budget this year".