Mr. Angel Gurría:

The tax and transfer system continues to be highly redistributive. I mentioned this morning that this was something that was slowly disappearing from the taxation systems of other countries, including all the OECD countries. Like all other countries, Ireland initially had uneven and unequal income distribution but after the taxes and social security contributions, as well as the delivery of social security services, the country ends up with a much fairer society and much less inequality. That is a very desirable result and it allows the benefits of growth to be shared more widely.

The Irish people report a high level of satisfaction with their work-life balance, and social indicators such as number of social connections are also favourable. A parliament’s work is never done, as members know, and it still has to tackle some of the legacies of the crisis and build resilience to future shocks. That means reducing debt or continuing to reduce debt. Ireland’s gross public debt was around 75% of GDP in 2016 and it has continued to reduce in 2017. In per capitaterms, it is high compared with the OECD average and reducing public debt would create scope for budgetary policy to support the economy in the event of a negative shock, such as a disorderly Brexit. This could be achieved through broadening the tax base in a growth-friendly manner. For example, VAT preferential rates and exemptions should be phased out and the property tax yield raised through more regular revaluations of the tax base.

I welcome the Deputy. It is nice to see her again.