Dr. Thomas Conefrey:

It is not the change in methodology that is picking up this effect that was not been counted previously; the phenomenon was being counted, but, as Dr. Donovan pointed out, the scale increased. It is important to explain that this activity is carried out in Ireland. Plenty of multinational companies send raw materials to Ireland where minimal processing is carried out and they are then exported. These are Irish resident firms carrying out this activity abroad. It is as if the opposite is happening; for a long time the effects cancelled out the adjustment in the national accounts in taking account contract manufacturing, but the extent of Irish resident companies contracting out manufacturing abroad is now outweighing the other and we have this large positive adjustment to our export figures which can be seen clearly if one looks at the national accounts. Exports of goods were up by about 14% in the first half of the year, but there is not the same adjustment on the imports side.