Dr. Seán Healy:

As to whether we could be a bit more ambitious on the total tax take, we are being fairly ambitious with the total we are proposing. It moves us closer to the European average although we would still be below it. As to why a 6% minimum effective corporate tax rate, we see that as a pro temitem. Our view is that the European Union is moving towards a consolidated situation with regard to corporate tax and that we are likely to head towards a corporate tax rate of 17.5%, much as that might hurt everybody in the Irish political system. Through all the crashes and everything else, the one thing they would never give way on was the 12.5%. It is a kind of icon. I think it will eventually be 17.5% and then I would put the minimum effective corporate tax rate at 10% or 12.5% - we could argue about that. There should be a minimum effective corporate tax rate. If it was put at 6%, it would bring in an additional €1 billion. That is an extraordinary amount. It would come from a relatively small number of sources that are currently paying 1% and 2% by their own admission.

We have not suggested any increase in income tax because we do not believe it is necessary. We are very positive about the financial transaction tax. We did a lot of the research that is behind the proposals for the Irish Government to take it on board. We have not included it here simply because we need to implement it jointly with eight or ten European countries of substance. There are about ten European countries interested in doing this and it will be much easier once Brexit has taken place, whatever kind of Brexit we have. The main resistance to it in the European Union has been from the UK. France and Germany were positive about it.

On the other tax issues, we have suggested things like applying standard rating to those non-pension discretionary tax breaks that cost more than €10 million a year. That would yield €480 million in 2019. That is a very substantial source. Another suggestion is to remove the tax refund element for unused research and development tax credits. We consider the capacity for corporations to pick up unused tax credits to be really scandalous. There is €168 million in that space. We are all in favour of giving the research and development tax credit but one should not get it unless one puts the money in. There is an issue there.

The Deputy asked what we think is the hold-up on the housing question. I think there is almost an ideological resistance to public builds. It seems to me that it has to be done by the private sector in some way or other, according to the Government. As for the resistance to doing work at local authority level, my opinion comes from discussing the housing issues with local authority officials, who believe all of that is going to be taken away from local authorities in the same way that they saw water being taken away. They do not want to put in a big investment and make a big effort and then see it all gone. They are saying to the Government that if it is going to take it, it should take it. The Government does not seem to be ready to take it.

I agree with the comment made in the previous session that we need a housing agency of substance. We ourselves have made some very concrete proposals, including the first serious effort at designing a cost rental system that would allow the public and private sectors plus housing associations and other stakeholders to work together. We have made a very serious effort at putting together a proposal that would not be negatively addressed by the fiscal rules, in other words, the Government would not have a veto on the thing.

That would mean in effect that the money would not automatically all go on to the Government's balance sheet because it would be run as a company. I would see NGOs, the private sector and housing associations involved in it, as well as the Government because the State has much to offer in that space too. There is much that can be done in housing. The failure to deal with what is happening is a scandal because of the fact that supply is not keeping pace in any way with demand. We need to crack this. I have no problem with radical different ideas about how to do it. It just needs to be done. It will cost us money and we have to be prepared to invest.