Martin Cullen
Question:64 Mr. Cullen asked the Minister for Enterprise and Employment the amount by which transfer pricing distorts Irish national income accounts; and the implications of such distortions for the formulation of public policy.
Written Answers. - Impact of Transfer Pricing.
The level of Gross Domestic Product (GDP) is affected by transfer pricing but I am informed by the Central Statistics Office that the extent of this is difficult to determine. That Office has also indicated that the impact of transfer pricing on Gross National Product (GNP) is less significant because it excludes any profits earned by foreign-owned enterprises which are repatriated abroad. As such, it is a better indicator of economic well-being in the country than GDP.
As regards any wider policy implications, these would be for a number of Ministers to consider. In the case of industrial policy, for which I have responsibility, I would merely reiterate my own and the Government's commitment to the continued attraction of overseas industry as a major contribution to national economic development and job creation.