Mr. Terry Quinn:

The expenditure benchmark rule is central to estimating the fiscal space. It is grounded on the estimate of potential growth in the economy. Estimating that figure is the responsibility of the Department of Finance. It is determined under an agreed harmonised methodology.

Deputy Burton is right. It should be acknowledged that the harmonised methodology used to estimate potential output faces significant challenges in the light of the revisions to the national accounts. The way we deal with those distortions arising from the national accounts revisions is essentially a matter for the Department of Finance, presumably in consultation with the European Union and the Irish Fiscal Advisory Council.

It is clear that the actual level of activity in the economy and the potential growth rate on which the expenditure benchmark rule and the estimate of the fiscal space are grounded is far lower than 26.3%. It would be folly to plan on the basis of a growth rate of 26.3% or anything like it. I am sure the Department is trying to take that into account to arrive at a reasonable estimate of potential growth and, on that basis, the fiscal space will be estimated. However, that is not for us to do.