Professor Michael McMahon:

I will pick up on two aspects. On incentives to work, an important dimension of a tax and welfare system is to ensure that you provide the supports you want to whichever sectors of society - the poorest, the unhealthy and the disabled. There are many deserving sectors. At the same time, you must ensure that normal people getting up and going to work feel it adds value. We support that. We do not take a strong view on any particular measures apart from a tax and benefits system that achieves those social objectives while also encouraging work being a good thing.

On the construction question, the discussion reminded me of something which I will throw into the mix. We took part as a council in the national economic dialogue which, as most of the committee knows, brings together people from the full cross-section of Ireland - employers, unions and groups representing the unemployed and the youth. It is a wonderful occasion when people get together to express their views. An important point when thinking about housing, construction and the difficulties we have is we should make absolutely clear that the Government's role is not purely financial. There are regulatory considerations and progress with the planning system which would also help to make progress on this issue. On the issues the committee brings us in to talk about regarding the billions and millions being spent, it would probably not have a big impact, but it could have a big impact on the real world we are talking about and the infrastructure deficit. Unless the question is going to go back to fire doors, the decision on how to address this is incredibly important for Ireland, the economy and society. It is not just financial; there are other dimensions which are important to keep in mind.