Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source

It is worth saying they were very complimentary about the efficiency of the large case unit.

We know that a small number of very large companies pay a sizeable portion of corporation tax. They fall in sectors such as financial, insurance, manufacturing including pharmaceutical, and information and communications. We also know the effective rate very much depends on what can be set aside against the 12.5%. The frustration is that even though the 12.5% is generous, in some cases only a tiny proportion of that ends up being paid.

We are told that research and development is the main area against which tax can be set aside. I imagine that there is a limited amount of research and development that can be put into financial and insurance activities. However, one could lose a fortune in pharmaceutical manufacturing because there is ongoing development of new drugs which we are told is very expensive. Is there a bit of a conundrum in that we are giving very generous research and development write-offs for, for example, the pharmaceutical sector, when we have some of the most expensive drugs in the world. Does that get factored into the approach to research and development in that particular sector, for example? I do not think it is possible to say it is the same with other sectors. A computer costs largely the same here as it does elsewhere. However, drugs fall into a different category. Does that come into play at all?