David Cullinane (Waterford, Sinn Fein) | Oireachtas source

I welcome Professor Barrett and Professor McQuinn and I thank Professor Barrett for his opening statement. I have four quick questions and I will deal with them all at the same time, if that is okay.

The first relates to growth levels. Professor Barrett referred to the growth levels and adjusting the 26% GDP figure that came from the Central Statistics Office to determine real economic growth. The chief economist from the Central Bank was before the committee yesterday. He indicated that the preference of the Central Bank would be to develop an Irish bespoke way of calculating growth and using a different set of economic indicators. He suggested we could then try to win support for that approach throughout Europe and potentially globally. How realistic is that?

Professor Barrett mentioned the universal social charge. Can he expand on whether he wants it to be phased out or left as it is? If he believes it should not be phased out, could he give his reasoning for this? If it is phased out, what will lose out? What will come under pressure? Is it capital investment or current spend? Where will the sacrifices be made if the universal social charge is abolished?

In the calculation of fiscal space there is a difference between gross fiscal space and the fiscal space net of the Lansdowne Road agreement and demographic pressures. In some of its previous reports, the ESRI has been somewhat critical of the amount of room provided for demographic pressures. Does Professor Barrett think it is undervalued or that it is greater than in the calculation of gross and net fiscal space?

My final question relates to capital investment. I do not think Professor Barrett intentionally set out a hierarchy of priority but a vague reference to capital investment seemed to be tagged on at the end. Given that we have very depressed levels of capital investment and that there are obvious needs in areas such as health, housing and education, there is always demand. We have had the Cassells report on the housing crisis and the Department has said there will be a need for an increase of €3 billion in capital investment in roads over the next five years. How important is investment in capital and what are the priorities in that area?