85. Deputy Gino Kenny asked the Minister for Finance if the proceeds of moneys captured in criminal drug hauls are included in GDP figures; and if he will make a statement on the matter. [23822/17]

Minister for Finance (Deputy Michael Noonan): In general, certain illegal activities such as drug smuggling and prostitution are recorded as part of GDP. A requirement to include such activities in the National Accounts has existed since the European System of Accounts (ESA) 1995 version of the standards were introduced. However, lack of data sources for the relevant illegal activities caused measurement issues for all EU Member States. As a result, a transversal (EU-wide) GNI reservation was placed on all member states and required comprehensive estimates for these activities to be produced.  Estimates were produced in September 2014 and the reservation has been lifted, which also coincided with the introduction of the ESA 2010 standards.

However, the proceeds of money captured in criminal drug hauls does not relate to production and as a result would not be included in GDP. It is treated in the National Accounts as a fine and recorded as a current transfer.