Mr. Gerard Brady:

It probably has had an effect in Sweden. When we talk to Swedish colleagues in BusinessEurope, one sees the impact of the regime, particularly for small companies. We have done it very well for multinationals in that we have an attractive regime in place for them. However, when one looks at the tax regime for indigenous companies, we have the third highest capital gains tax rate in the OECD and the highest rate of stamp duty on shares for indigenous companies listed on the Stock Exchange. It is the highest in the world and double the second highest rate. We have a high share options tax rate, particularly for smaller firms. Last year the Government introduced the key employee engagement programme, KEEP. However, the feedback from members suggests there has been no take-up of it because of the restrictions. The Swedish scheme has the advantage of being state-aid approved, meaning that one will not have to go through a two-year process of asking the Commission for permission. As it is working in Sweden, there is no real reason it could not work here.