Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The key difference between the Deputy and me is that he is only looking at the €700 million that is unallocated. However, our planned budget expenditure for next year is €68.8 billion. We are debating the unallocated funds, whereas I am focused on the totality of what we will spend next year. That substantial figure will allow us to make progress on many of the needs we are debating here today. That figure could, in theory, be increased further by increasing tax in some areas. I say that carefully because this is where the Deputy and I will differ. Increasing our spending ability by reducing the tax expenditures the Deputy mentioned would have other effects on the economy. The Deputy and I have previously debated the research and development tax credit, for example.

The Deputy sees that as a tax credit that trickles up to the wealthy. I see the research and development tax credit, and I have direct experience of this, as playing an important role in the retention and the development of employment in our economy. The theory of what Deputy Boyd Barrett is advocating is logical. I have always acknowledged that he puts forward consistent propositions but where I differ from him is that I believe the tax rates and measures he is referring to would have a very negative effect on our economy.