Oireachtas Joint and Select Committees

Tuesday, 8 October 2013

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Macroeconomic Forecasting: Discussion with Department of Finance

7:10 pm

Mr. John McCarthy:

On the Chairman's first point, the Department's intention is to come forward with a working paper on the patent cliff issue and what it might mean. That paper will hopefully be ready in the next couple of weeks. It might be of interest to read it.

IT is the main driver of services exports - they account for about 40% of overall exports of services. They have grown strongly in the first half of this year; the figure is something like 10%. It is positive in the sense that that sector is more labour-intensive than some of the pharmaceutical sectors which are more capital-intensive. It is the biggest sector and employer and the area where the strongest growth is seen. Other sectors, such as business and accounting services, which are traded across borders, are doing reasonably well. Those, too, are reasonably labour intensive as a whole.