Professor John McHale:

It is, but the question arises of whether it would be more developed in the absence of the multinational sector. That is unlikely. On Deputy Richard Boyd Barrett's specific point on risk, investment is concentrated in particular sectors such as information technology, medical devices and pharmaceuticals, which makes us vulnerable. However, during the recent recession the net export sector of the economy which is largely driven by multinationals kept the economy from a much deeper recession. There is a level of diversification in being part of these international production chains, as well as having a strong indigenous sector. There are, undoubtedly, risks, but they would be greater if we concentrated more heavily. If we did not have the multinational sector, we would still probably be concentrating on particular industries. We probably would have concentrated heavily on agriculture, which can be a very volatile sector, and been more dependent on domestic demand, which was severely hit in the recent recession. In terms of risk, therefore, I do not share the Deputy's view that the presence of a strong multinational sector puts us in a more risky position.