Mr. Paul Sweeney:

When the rate was reduced in 1995 by the then rainbow Government, to kick in at 12.5% in 2001, I was on the Forfás committee that recommended the 12.5% rate and, of course, I dissented as I thought the rate was too low. Congress said it wanted to keep the rate at 20% but it went to 12.5%. Has it served Ireland well? It certainly has. Is it too low? There are a couple of points on it. Some 62% of companies do not pay corporation tax because they are proprietary directors and they ensure they do not and those that do, pay an effective rate of between 4% and 5%. What we have proposed for this budget, which is a little different from what we said previously, when we were talking about the headlight rate referred to by Deputy Mathews, and if everyone in the main parties is so obsessed with the rate, is that essentially the exemptions be curbed and if we raise 2% more in the effective rate, one could raise €2 billion. The rate is very unpopular. I was in Berlin last week and got hammered over it. We are looking for a handout in grants and will not even join the financial transaction tax while at the same time we are bleeding them dry with Dutch and Irish sandwiches or whatever they are called.