Mr. Seamus Coffey:

In principle, absolutely. We agree that if additional spending is warranted, it should be funded through sustainable sources of revenue. If they can be found, it would be ideal. It is up to the Oireachtas to decide where that additional revenue can or should be found. Our job is not to decide among various policy measures that can be chosen. We absolutely agree with the point made.

On volatility and the distortions, the Irish Fiscal Advisory Council, in considering the impact on the foreign direct investment sector over the past 12 to 18 months, has been very vocal on the volatility and the variability in corporation tax receipts.

While the employment and impact on the broader economy might be relatively stable, we have seen quite substantial volatility in corporation tax receipts. We have not been remiss in pointing out there are potential distortions, because if revenue can rise as rapidly as it did in 2015 potentially it can fall as rapidly.