Dr. Tom McDonnell:

I thank the Deputy. If, alternatively, we were to spend on universal basic services such as childcare, housing and public transport, it would reduce the cost of living. The price inflation or cost of living would be lower and that would reduce the necessity to increase welfare rates because the sufficiency benchmark will have changed. That is what I mean by policy flexibilities. If we have fiscal space of approximately €4.5 billion every year, and that will increase slightly every year, the question is how do we spend that money. Indexation is a good way to spend the money, but I would also say that it would be better for the economy and society in the long run if we make those substantive investments in universal basic services in the way that other European countries and increasingly, hopefully, Ireland will do in the future. They are not necessarily competing with each other directly. It is not necessarily an either-or situation; you should do both. Those investments in universal basic services will reduce the necessity to spend on cash payments.