Kieran O'Donnell (Limerick City, Fine Gael)
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The Department is projecting a figure of 1.8% in 2014 and Reuters is coming in at around the same figure at 1.7%. In respect of the Department's forecasting, the only areas in which forecasting came in ahead of target were investments, in respect of which the Department forecast a rate of 3.7% and the figure is 4.9%, and unemployment, in respect of which the Department forecast a rate of 14% and the figure is 13.5%. If there has been a reduction in unemployment and an increase in investments, why would the Department foresee a reduction in consumption? It projected a 0.2% increase in consumption and the figure is -0.2%. On Government spending, the Department projected a decrease of 2.1% and the figure is 0.9%. On exports, it projected an increase of 2.3% and the figure is -0.6%. On imports, it projected a decrease of 0.4% and the figure is 1.8%. Even though unemployment has decreased as a percentage, the Department projected an increase in employment of 1.6%, but the figure is 0.4%. The normal experience in economies is jobless growth, whereas the Department appears to have what it calls negative productivity, but it is effectively jobs with very low growth.

Will Mr. McCarthy explain why there are all these different variables which appear to be moving in different directions from what one would expect? What does it mean for the ordinary person? Effectively, we are seeing that the level of unemployment has gone down, while the level of employment has gone up, yet the rate of consumption is down. It was supposed to increase by 0.2%, but it is down by 0.2%. How does that feed into the growth projections? Will Mr. McCarthy give his overall perspective as to where he sees the economy next year? What measures does he believe have worked? Mr. Enright referred to the reduction in the VAT rate for the hospitality sector. Generally, what policy instruments work in creating employment and seeing this reflected in an increase in consumption which feeds directly into growth? What is Mr. McCarthy's overall view?