David Cullinane (Waterford, Sinn Fein)
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214. To ask the Minister for Finance the level to which intellectual property imports and aircraft trade by aircraft leasing companies distort investment and net exports data; and if he will make a statement on the matter. [21338/16]

Michael Noonan (Limerick City, Fine Gael)
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Subject to the release of the annual 2015 National Income and Expenditure (NIE) accounts on 12 July the latest available data at the time of writing (referenced below) refer to data to the fourth quarter of 2015.

Prior to the release of Q1 2016 Quarterly National Accounts, the CSO published annual but not quarterly data on intangible investment.  It does not publish a disaggregated breakdown of investment in aircraft, whether for leasing or any other purpose.  Further, although it publishes detail on intangible investment overall, the CSO does not publish data on intellectual property investment specifically.

The quarterly data show that gross fixed capital formation (i.e. total investment) for 2015 is estimated at €47.25 billion in current price terms - an increase of €10.7 billion in annual terms. Looking first at the impact of intellectual property assets, currently available Balance of Payments data to the fourth quarter of 2015 show that net imports of Research and Development amounted to some €12.8 billion in 2015, an annual increase of €7 billion, which was largely driven by the on-shoring of intellectual property assets imported throughout the year.   

While disaggregated data for aircraft leasing trade investment to which the Deputy refers are not available from the CSO, it should be noted that all aircraft related investment is entirely GDP-neutral as each unit of increased investment is fully offset by a correspondingly higher level of imports in the year. Monthly trade statistics published by CSO indicate net trade of €4.6 billion for 2015 in 'other transport equipment' (SITC-79) mainly covering aircraft-related trade for all purposes including leasing.

These amounts for aircraft and net R&D imports should be seen in the context of an overall goods and services trade surplus of €44.8 billion in 2015, which was over €10 billion higher than the previous year.

It is important to note that whilst investment in aircraft and imported intellectual property of the nature outlined above is GDP neutral in a given year, they can be expected to give rise to future income inflows.

Finally, as already noted, the annual National Income and Expenditure along with the Balance of Payments data for 2015 are due to be published on 12 July, and may update the figures provided above.