Audit office calls for realistic political party promises

The national audit office has urged political parties drafting their election programmes for the October general election to be realistic in their plans, to make sure the finances are covered and to set clear short term targets.

It is the first time the audit office has written directly to political parties about their manifesto promises ahead of the election.

Audit office chief Pieter Duisenberg said politicians must avoid “wishful thinking” that later ends up in coalition agreements filled with unworkable promises. “Just make sure you can actually deliver what you promise,” he said. “And make realistic plans, not daydreams.”

For example, the office said, the next government could scrap around €30 billion in “inefficient” tax benefits and subsidies, including mortgage interest relief and the lower VAT rate on groceries.

Research by the finance ministry published on Tuesday shows that many tax breaks for individuals and businesses fail to achieve their aims. For example, ministers could save €9 billion by phasing out mortgage tax relief, which could, the report suggested, be used to lower tax cuts for everyone.

The audit office also called on political parties to be realistic about major projects, saying it had “serious doubts” about whether initiatives to speed up residential housing development will work.

It suggested removing treatment that is not proven to be effective from the basic health insurance package and criticised subsidies for individual heat pumps for domestic homes.

Duisenberg told the AD that many issues go unresolved because of poor planning on how to pay for them. “If you say you want to be world-class in mobility, but spend €20 billion less than the roads department says is needed, you achieve nothing,” he told the paper.

The auditor also again flagged the threat of a drinking water shortage as an emerging crisis. Targets have been set to cut daily consumption per person from 120 to 100 litres, but are not being met.  “That is the next disaster waiting to happen,” Duisenberg said.