Mr. Derek Moran:

It has been the case for as long as I can remember that for new employment the sensitivity or elasticity in terms of tax is far weaker than for an earnings increase. That arises for a range of factors. It may well be because it is at entry level and people come in during the middle of the year and have tax credits available which have not been used in the course of the year. The intensity in tax terms is much weaker. When there is an adjustment in earnings we get a much stronger elasticity. Mr. McCarthy is much better at describing elasticity for an increase in earnings, but if we see a 1% increase in employment, we will see approximately a 0.8% or 0.9% increase in tax. If we see a 1% increase in earnings, we might get a 2.1% or 2.2% increase in taxes. That has always been the way. It is not a new phenomenon.