Tommy Broughan (Dublin North East, Independent)
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295. To ask the Minister for Finance if his Department has estimated the impact of European Central Bank quantitative easing on growth rates on tax revenues since this policy began; and if he will make a statement on the matter. [37614/15]

Michael Noonan (Limerick City, Fine Gael)
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Under the European Central Bank's Expanded Asset Purchase Programme, often referred to as "Quantitative Easing", the eurosystem (comprising the ECB and the national central banks of the euro area) has been purchasing €60 billion of public and private assets per month and plan to do so until at least September 2016, or until there is an improvement in inflation to levels consistent with price stability.  Purchases of sovereign debt began on 9 March 2015.

While it is difficult to estimate directly the impact of Quantitative Easing (QE) on growth rates here since this policy began, the Irish economy should have benefited from the programme through a variety of channels, namely by:

- reducing the likelihood of persistent 'deflation', this will have supported consumer spending and investment;

- the absence of deflationary pressures which will make legacy debt less burdensome as the real debt burden becomes less onerous;

- lowering real interest rates and by increasing liquidity, QE should lead to an easing of credit conditions and increased bank lending to the real economy over time;

- supporting inflation and real economic activity in the euro area, a key export market for Irish goods and services; and,

- the exchange rate channelthe depreciation of the euro is benefiting Irish exports to markets outside the euro area.

Also, as QE has boosted nominal growth, this is one factor behind strong tax revenue growth this year.