Dr. Robert Kelly:

I will start with the last question and work my way back. Again, Dr. O'Brien may want to come in. The Deputy makes an important point, and it is one I did not get a chance to make in the opening statement. We talk a lot about capital spending, but the capital spend itself is one component. There is delivery, potential delivery costs and the frictions in the system. We have said this multiple times. We have pieces where you can look at potential costs from delaying the delivery of infrastructures. As for whether it is a public or private piece, I will let others decide what the best avenue of delivery is, but the reality is that removing all frictions, delays and any of that in the area of efficient delivery is as important as making the capital expenditure available.

There is a second point within that. This is why we talk so much about the 5% rule because if we want to do capital spending, we have to make the space in the economy. You might ask what the hell I mean by space in the economy. If we want to run all our areas of the economy hot because we are doing a lot of fiscal stimuli and our labour market is under 5%, it means we are waiting for labour. It means we are waiting for expertise to come in.

All of these add to cost.

If we are to prioritise infrastructure, we also have to make this space. One way we need to do that is by reducing some of the stimulus that might be supplied to other parts of the economy. Broadly speaking, there are a couple of ways of doing that. One way is through taxation and another is less current spending. If we want to spend on all fronts at once, it is going to be very difficult to get value for money per euro spent. That is one reason we advocate for it so much.

On the question about inflation and the tax rate, if I have understood correctly, how the tax rate would impact inflation in the services sector - I am open to correction - it would be a once-off adjustment. If VAT is reduced and if it is kept down, that would reduce inflation for this year. There is an important consideration if the motivation for these policies is inflation as to who is targeted. We have done a lot of work looking at who consumes what. If this is about a distributional issue, for example, we know food and energy inflation are what lower-income people are most exposed to. On the trade-offs in terms of inflation, it is the upper quartiles of income distribution which are exposed to-----