Mr. Fergal O'Brien:

I thank the Chairman and other committee members for this invitation to attend the joint committee. As regards our home improvements tax credit-grant proposal, we have examined a couple of models internationally. We have found this type of approach to be effective in stimulating activity in the domestic economy. This is what we regard as being probably the most significant challenge we face currently, which is to see some sort of normalisation of activity in the domestic economy. We have focused on the home improvement sector for a couple of reasons. One is because it is so labour intensive. It has a relatively low import content. We also believe we still have significant savings and wealth in this economy so there is a capacity for households to unlock the activity, given sufficient and adequate incentive.

Another issue of which we are particularly conscious - not just in home improvements but also across many sectors of the economy - is the growth in the black economy.