Dr. Thomas Conefrey:

We agree that the economy is hugely dependent on the traded side on multinational enterprises. In a way, it is a sign of success that the economy has been so successful at attracting foreign companies and is, as a result, very dependent on those companies for a large share of its output. As the Deputy said, that presents risks in terms of a potential loss of output if there were a downturn outside Ireland and also, as we have said, on the corporation tax side.

The Deputy asked how we might go about insulating ourselves from that concentration of risk.

With regard to the point we make on corporation tax, one way of insulating ourselves is to be cautious in using the considerable increase in revenue we have seen from the multinational sector this year until we are more certain about what is driving it. I refer not only to next year because it is likely that these revenues will continue to feature in 2016, as the Revenue Commissioners have indicated. However, we need to be sure over many years or in the medium term, and not just 2016, that these revenues will exist. One insurance policy is to be cautious in using those revenues until we can be more certain they will be sustainable.