Budget will be judged on its ability to create jobs, says Harris

Minister of State at the Department of Finance Simon Harris has said the budget will be judged on whether or not it created jobs.

Mr Harris also said the forward-planning element of Minister for Finance Michael Noonan’s tax reforms would be an exciting factor about the October 14th announcement.

“The litmus test for any tax reform measures will be: will this help create further jobs?” he said.

“I think the exciting thing about this budget though is that it can pave the way beyond austerity and into a situation of economic growth and recovery.”

However, he cautioned that the Government could not do everything that it would like to in this budget.

Mr Harris said while the public finances remained fragile, the Government could provide a “roadmap” with its tax reform plans.

He said it was too early to say what the exact implications of the budget would be, but a previously anticipated significant degree of reduction in expenditure or increase in taxation would no longer necessary.

The Government was now in a position to discuss what measures could be taken if there was flexibility in the public finances, he said.

Asked if he would prefer changes to income tax bands or the USC, he said he thought it was important not to be overly prescriptive.

Cabinet would decide on which was affordable and which was best, he said.

“It’s important to note that about two-thirds of the USC is paid by earners in this country who are earning above €50,000.”

Mr Harris was speaking in the Botanic Gardens in Dublin yesterday (Weds) where he opened a Viking House in the presence of the Norwegian Ambassador Roald Næss.

The house is a replica of a 10th century house on Fishamble St.