Michael Noonan (Limerick East, Fine Gael)
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Question 142: To ask the Minister for Finance his views regarding the pattern of economic growth and if it necessitates an adjustment in Government policy. [33118/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Economic growth this year is being sustained primarily by consumption and investment with a weak performance by exports compared to previous years. The composition of economic growth will vary over time and from year to year. As an economy matures, the part played by consumption will tend to increase.

The level of export performance in any given year is due to a number of factors both external — such as world demand and exchange rates — and internal — such as competitiveness and the level of foreign direct investment taking place in the economy. We are concentrating on the internal factors in our incomes policy objectives and in our fiscal approach, in particular through low tax rates and incentives to build up our knowledge base, for example, through investment in research and development.

This is the right policy focus and we are open to considering such further measures as may be required from time to time to assist our economic performance.