Mr. Algirdas ?emeta:

Economic theory provides an assessment of various types of taxes which are most growth-friendly compared with others. A property tax is one of them and could work in a growth-friendly way. I am not talking simply about Ireland but about other member states which shift from labour taxation to property taxes to reduce taxes on labour and put the tax burden on property. Taxation cannot solve all the problems. If there are social problems, a system of social benefits and direct supports could be used in specific areas. Unfortunately, sometimes, we use taxes as a social tool when in many cases, it is better to use them as a revenue raiser but then provide direct social supports to those who are vulnerable.

In assessing Ireland's performance, the troika is very clear that Ireland is doing a great job. Of course, it is very painful. I completely agree with the Deputy that it is very difficult for the people to survive this situation but economic adjustment is always difficult and one must concentrate and make necessary reforms. The reforms that have been or will be introduced by Ireland will restore its growth and prosperity in the future. I agree that it is a very difficult time for many people in Ireland.

Privatisation is not a subject for which I am responsible. I have been responsible for privatisation in my country for several years and I believe that if carefully designed and well prepared, privatisation can provide both the revenue due to the public coffers and efficiency in previously public companies. Everything depends on how carefully and cleverly the privatisation is designed. I believe Ireland has a high capacity to produce efficient privatisation programmes which will work well.