Shane Ross (Independent)

The Minister of State has woken up at long last. I am delighted. It is about time. I accept that his experiences recently have been difficult but he must realise that it is unlikely that things will remain quiet for long.

Where is the Government's corporate tax policy? Why is it not examining the possibility of introducing fundamental tax reforms rather than fiddling with the system that is already in place? I have inquired on numerous occasions with regard to why we do not change the position in respect of corporate tax. The Minister for Finance, Deputy Brian Lenihan, correctly referred to the IFSC and to multinationals as great successes. Why have these been so successful? The answer is that it is a result of the special taxation rate of 12.5% which applies to them. If the sector in question works so well, why did the Minister not consider reducing the corporation tax rate to 9.9%? If that sector is one of the flag carriers of the Irish economy, then it should be looked after and promoted. I am not stating that it should be subsidised but it should certainly be encouraged. However, the Finance Bill does not contain anything to encourage the sector. The Minister could have reduced the rate of corporation tax rather than increasing other taxes.