Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I agree. Mr. Dalton mentioned that GDP and GNP are of limited value in providing insights into the domestic economy. The figure of a 26% rise in GDP, published last July, was an accurate reflection of the data in terms of how we calculate GDP. The reality, however, is that GDP, in so far as how it is measured and how people interpret it, no longer provides us with a proper metric. That was not just the case this year; there was evidence of it in previous years. We heard about how contract manufacturing in previous years made up a portion of GDP figures. When did a perception of the limited value of GDP begin to creep in, particularly in the context of globalisation?

The witnesses noted that intellectual properties being categorised as intangible assets and moved on to Ireland's balance sheets created €3 billion of additional capital stock. I presume we are talking about a small number of companies here. If the trend in intangible intellectual property were reversed, Ireland would find itself with a major drop in GDP, which could put us into a statistical recession and see our debt to GDP levels skyrocketing which might, in turn, interfere with how the bond markets and so on deal with us. That is as likely as what we saw last year. How do we safeguard ourselves in a situation where a limited number of companies are moving intellectual properties between different jurisdictions, thereby screwing up our national accounts and potentially having various unforeseen consequences? We are already seeing the contribution we have to pay to the EU increasing as a result of the situation in regard to intellectual property. There could be wider implications if the situation were reversed.

The 26% figure was a revision, with the CSO previously indicating that GDP had risen by 6.7%. I assume that revision was done in consultation with the large cases unit within the office, which deals directly with the 75 companies. How did it transpire that the data provided by some of those companies to the large cases unit was incorrect and had been amended? Was it the case that those firms did not provide accurate and timely information to the CSO, leading to the original indication of a GDP increase of 6.7%, and came to the office later saying they forgot to mention they had moved all their intellectual property from California to Cork or wherever? Was the CSO left to deal with the fact there was an additional €3 billion that had to factor into the accounts? Is there any requirement on any of the large-case companies to provide the CSO with specific types of information and, if so, are there any penalties for their failing to do so? Is the CSO following up any such failures?