Dr. Tom McDonnell:

I agree that the economy needs to be diversified. We have a large multinational sector but we all know that the indigenous sector has not performed well since Independence despite a very favourable model. We have geographic disadvantages, of course.

To do what the Deputy has described is more of a medium-term project. He was right to say that state aid rules make it difficult. The Asian tigers pursued a developmentalist model whereby they championed particular sectors and industries. They did this by being entrepreneurial states, that is, doing it themselves or by identifying champion companies. The semi-States are the closest equivalent in Ireland. They also subsidised particular industries and sectors.

If we want to convert much of the landscape from cattle to forestry, we will have to change the underlying economics to incentivise individuals. That would mean subsidies for forestry and the gradual rolling back of CAP. Forestry is capital intensive, there are upfront costs and income streams are not great. It is a big risk to take.

Regarding disillusionment, people need hope and a sense of the potential for progress. There has been an increase, at least since 1980, in the wealth distribution gap. Much of the inequality in wealth is intergenerational, that is, certain people have inherited wealth rather than earned it. Therefore, the policy solution is to nip it in the bud, which means a strong inheritance and gift tax that redistributes at that point with the money being, for example, hypothecated for social housing.