Professor Jim Stewart:

It is very difficult to answer that question. Ireland has got itself into a position where we must respond to what others are doing and we may not have much choice in the actions we take. One of the problems is that we have a tax-driven industrial policy. We do not have control over tax policy as it depends on the European Union, the United States or other countries. That is why it is risky. How should Ireland respond? I do not know because we must bear in mind the effect of the tax. How important is the fact that companies can undertake various activities to reduce their tax rates? Are the companies located here because of the availability of skilled labour or there is access to markets?