Pearse Doherty (Donegal, Sinn Fein)
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146. To ask the Minister for Finance if, regarding the CSO's new measurement of economic performance, which is designed to remove the distorting effects of multinational companies, to be known as adjusted gross national income, GNI, which will be phased in from the end of 2018, this new measurement will be used instead of the current economic current metrics of GDP and GNP by the European Commission, IMF and other international organisations; the way it will affect the calculation for projected fiscal space and the measurement of national debt in view of the current widespread use of the debt-GDP ratio; and if he will make a statement on the matter. [9377/17]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware the publication of a new adjusted gross national income (GNI*) was one of a number of recommendations included in the Report of the Economic Statistics Review Group. The Group was established by the CSO on foot of the exceptional growth rate in 2015 and the increasing limitations of both GDP and GNP as measures of economic activity in Ireland. It was tasked with advising on alternative indicators that would provide better indicators of economic trends in Ireland. As part of its response to the report, the CSO has undertaken to provide annual data on the adjusted measures of GNI from mid-2017.

While the adjusted measure of GNI, which excludes the impact of redomiciled companies and the depreciation of foreign owned domestic capital assets, will provide a reliable level indicator of the size of the economy, the CSO will continue to produce GDP, GNP and GNI in accordance with internationally agreed methodologies and our obligations under EU legislation. The use of these statistics for official purposes, which are fixed in legislation, will also continue such as, for example, evaluating government debt levels relative to those agreed in the Stability and Growth Pact, calculating our EU Budget contributions, and also as inputs to the calculations of fiscal space.

In the context of measuring fiscal space, as the Deputy will be aware, these calculations require estimates of the potential output of the economy, represented by potential GDP, which are prepared in accordance with the EU's harmonised methodology.

I wish to assure the Deputy that when assessing the position of the economy, my Department takes into consideration a wide range of indicators and the government will continue to pursue sensible policies aimed at ensuring sustainable growth and public finances.