Dr. Karina Doorley:

I will take that question and Dr. Keane might add a further comment. With base measures, we would be talking about what index we should use, whether it should be price or wage indexation, or a mix of those. Really that depends on the expected outcome. If the objective is to maintain income inequality and poverty rates, therefore, if we do not want to increase poverty rates or income inequality, indexation by wage growth is the correct measure.

It will keep the income distribution constant in relative terms. If we want to ensure people's purchasing power does not decrease, then price indexation is the correct method of indexation. Given that wage growth tends to exceed price growth most years, though, indexing by price means that income inequality will increase because people who are in work will be relatively better off than people who are out of work. I hope that answers the Deputy's question about the base. She might remind me of her second question.