Mr. Seamus Coffey:

My colleague, Mr. Tutty, has said that during the crisis, capital spending was cut extensively. The fiscal council looked at the level of capital spending. It suffered a cut of more than 60% during the crisis and is below our long-run average. In terms of capital spending, the Deputy asked if it would be justified if there was sufficient productivity growth. In that sense and in all senses it is important to carry out the appropriate analysis of the projects that are being envisaged to establish whether they offer value for money and improve the infrastructure and areas where the deficit is felt. It is important to undertake the appropriate analysis of the spending. We have looked at the plans for capital spending that the current Government has and the figures in the most recent stability programme update. Although it is not getting there at a very fast rate, when we get to 2021, under existing plans, capital spending will return to what are considered typical levels for Ireland if one takes a long-run average from the mid-1990s right through to now. Although capital spending is below typical levels at the moment, if the plans as outlined are adhered to, capital spending will rise over the next couple of years to get back to those. Capital spending by the Government is due to rise this year by 10%, which is quite a rapid rate of growth and pretty high growth rates built in for the next number of years will get us back to more typical levels. We have to make an assessment of whether that is appropriate, as my colleague Dr. Lawless said. It is not really the fiscal council's job to say the Government should be allocating money to tax cuts or capital spending. We look at the overall pattern. Judging by the plans that have been laid out, capital spending will get back to typical levels by 2021. It is up to others to judge whether they think that is appropriate.