Mr. Seamus Coffey:

The answer to the question highlights the uncertain environment in which we find ourselves. The Government could undertake additional investment via low-cost borrowing, but we also face a risk of overheating in the economy. If we are to initiate widespread capital projects, we must ask if the economy has the capacity to deliver them in a sustainable fashion. We would, in particular, be looking at the labour market.

The unemployment rate has dropped to 5%. We have seen a return to net inward migration and the beginning of some upward pressure on wages. That is widespread throughout the labour market. In principle, these are valid projects that could be undertaken. If they are to be undertaken in the current environment, we should ensure that there is space in the economy to do so. If we are going to do more in one area, then we will have to do less in others, and if the purpose is to be countercyclical, let us see if the slowdown happens first. The economy has been performing strongly and there is little indication of a slowdown in the labour market or in consumer spending. There is volatility in investment and housing construction remains more muted than we might have thought, but pumping more money now into a fast-growing economy would again just be further inappropriate policy. All of this highlights the confusing and uncertain environment in which we find ourselves. Within two questions we have been speaking about how to deal with a severe contraction that a hard Brexit might bring and then examining how excessive investment might lead to overheating pressures. That is simply a function of the unusually uncertain environment in which we find ourselves.