Joan Burton (Dublin West, Labour) | Oireachtas source

Given the recent figures from the census, there is clearly very significant growth in the numbers of young people and older people, which puts a lot of strain on the big spending Departments. I am concerned about capital investment infrastructure and I would like the witnesses to set out their thoughts on that. Clearly, we require a lot of investment in schools, third level, training and skilling people and productivity to grow the economy in the future. We also have enormous difficulties and huge unmet demands with regard to housing. I was a little bit taken aback by the letter, published last evening, from the Governor of the Central Bank to the Minister for Finance. While I understand the tone of prudence in the letter, I was very surprised to see the Governor suggesting that because of risk factors, we would lower the requirement in relation to reducing debt levels below the EU standard of 60%. The Governor did not pick a figure but if this was adopted as an immediate policy in this budget, quite a lot of people would describe it as putting a noose around our neck at a time when we have significant population and demographic pressures and when we have real needs that can only be met partly by a sustained cycle of capital investment. I do not know if the witnesses can comment on this but one of the hangovers from the collapse has been that capital investment in Ireland has not as yet recovered.

We are able to borrow money at the moment at historically extraordinarily cheap rates. We have demographic pressures. While I know the letter was the Governor’s, I would like Mr. Flynn, if he could, to comment on why he is looking for what would appear to be a significant reduction from the 60% target to an even lower target in respect of debt. In the context of risk factors and so on, I would like him to comment on the European Commission’s ruling in respect of Apple and how that might affect Ireland and the kind of risk factors he mentioned and the markets' perception of Ireland.