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

Dealing with the VAT question first, I am confident that our VAT target will be delivered across the full year. One of the reasons for that is that retail sales at the moment are up approximately 4% versus a year ago. Given the strong performance in the retail sector and a continued increase in the number of tourists visiting Ireland, it is very likely that we will deliver our figure for the year. If I look at the overall position of VAT receipts, they are currently up for 4.9% versus a year ago, which is a good sign as to where we will end up across the year.

On the Deputy's question on carbon taxing, I do not have too much more to say beyond that which I said to Deputy Breathnach a moment ago, which is that before the summer we will outline different options regarding how the revenue from that might be recycled if a decision were to be made to increase carbon taxation.

On the level of national debt at the moment and whether I anticipate challenges in regard to funding additional borrowing, if we need to do so, the chief executive of the NTMA answered that question yesterday when he said that it was very likely that that kind of additional borrowing, if needed, could be funded. One of the key contributions I will need to make that, as Minister for Finance, is to explain what this money will be used for and how over time, if we had a deficit, this could be corrected.

If a 12.5% corporation tax rate happens to come in another jurisdiction, it will be in the context of many other things happening within its economy and country that may have an effect on the ability of that country to be competitive. It will be all the more reason for us to show that we are a stable jurisdiction, particularly in a the number of specific policy areas. It is one of the reasons it is very important to ensure we deliver one budget this year.