Mr. Seamus Coffey:

We have been involved in the background work on the report in terms of meeting the team. In many areas, our views are similar to those identified by the IMF in the report. There are difficulties with this because it can be quite difficult to get accurate figures on the public capital stock. What is one measuring in terms of roads, infrastructure, buildings and other things owned by the Government? It appears the quite high level of public capital expenditure we have had in Ireland has not resulted in the value for money such expenditure might be expected to generate. The utilisation benefit of some of the projects may not be matched by the expenditure that goes into them. Therefore, with regard to the efficiency shortfall identified, the IMF assesses the output and level of activity associated with additions to capital stock. From an Irish perspective, it is saying there should have been greater increases in activity. In a crude way, one could measure the trend by considering the motorway network, for example, to determine the utilisation rate, the level of traffic and whether that level warrants a two-lane motorway between certain locations. One could also examine the rail network. The rail operator has recommended at times that certain rail routes, which have received substantial amounts of public funding in recent years, should no longer operate. Some of the project choices do not appear to be optimal from an economic efficiency perspective. If, over the coming years, public capital spending is to be ramped up, as predicted, facing a doubling of the 2015 level by 2021, we should ensure the money is going in the appropriate direction. These are huge sums of money and we should be getting value from the expenditure. It should not simply be a matter of economic activity. We should be seeking to improve both our physical and technological infrastructure and to make improvements in the other areas to which this money is devoted. Billions of euro are to be spent over the coming years. If the IMF has identified shortfalls in spending, we should be ensuring this does not happen in the future.