Mr. Sebastian Barnes:

Capital spending is a really key element. Capital spending, which had been very weak following the crisis, is now ramping up and is set to ramp up even further at quite a fast pace to a level that is historically fairly high for Ireland and well above the EU average. There is a lot of capital spending due, much of which is outside the Exchequer area, in areas like housing and the local authorities. There is a lot of investment going on and that is important. It provides a favourable background for the recovery and hopefully will deliver future benefits. Our specific concern is that the Government's projections for capital spending should be in line with its capital plan. For some reason, which we do not fully understand, the Government has projected a much higher number and that number takes investment to a very high level by historical and European standards. We are a little unclear as to what is happening there.

Obviously, capital spending is important for growth and many other things. It is important, therefore, that it is delivered. In past years, there has been a tendency for the capital budget to be underspent. It is important that the targets are met in a sensible way, not just because costs are going up but because volume is being delivered. Obviously, delivering capital projects is a complex business. On the quality of those projects, there are many issues arising which are beyond my expertise. Professor McMahon may have something to add on that.