Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Cuirim fáilte roimh na toscairí. Bhí an anailís ar fheabhas. The IFAC has done a great service to the State with its recent analysis. Having read the report and examined elements of the economy, there is an awful feeling of déjà vu. While everybody welcomes the increased Exchequer returns, three elements are manifesting themselves in the economy. One is the imbalance in the economy, with 90% of our exports in the foreign direct investment, FDI, sector and 70% of corporation tax coming from approximately 140 firms. We are dependent on a very small pool.

There seems to be a shifting of revenue generation towards more volatile revenue generation centres. For example, in the past there was a shift from personal taxation to stamp duty and the construction industry. Now, we seem to have a shift from personal taxation towards the likes of the volatile corporation tax sector.

In the lead-up to the crash of 2007, there was an uncontrolled economic factor, namely, the low interest rates set by the EU which had a major effect on the overheating of the economy. While the bounce-back is welcome, there is an enormous array of external economic factors over which the State has no control and which are blowing very strongly in favour of the State. As Professor McHale's report states, there in an output gap which is reducing quickly, and there is a danger again of the economy overheating, which is shocking. Professor McHale seems to be saying there are very strong echoes in Government fiscal policy between now and before 2007. Is this the case?