Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

On a similar theme I am interested in looking at a breakdown of the 800 people who are availing of the Special Assignee Relief Programme, SARP. I wonder how many are working in the constituency of Dublin Bay South. I would say a fair few are working in the Irish Financial Services Centre, IT and so on. There is a concern that we are in danger of creating what has happened in San Francisco where there is a two-tier society, a two-tier city. Those who are wealthy and well paid within the very high-tech sector are doing well, while everyone else cannot even afford to live there. That is what is happening in Dublin Bay South.

A total of 1,000 apartments are being built in the docklands, of which more than two thirds have been contracted in advance for some of the high-tech multinational companies. Will we keep going with the Dutch, Luxembourgish or UK economic model, which involves deregulation and a race to the bottom? There are real risks attached to this model, particularly if we extend it, as has been proposed, to new hire employees. How do we make it fair for my constituency in which local people cannot afford to live and which if we keep on this route will only be a home for workers in high-tech multinationals who have a lower tax rate and probably have accommodation costs covered? At what point do we start saying that we do not want that divided city approach?

With regard to the research and development tax credit, the criticism cited by the witnesses about not veiling it through outsourcing was interesting. I would welcome an extension of it as I favour a change of emphasis towards the use of our universities as is international best practice as the witnesses noted. Have the universities commented on how this would work and be applied and what additional benefits it might bring them? Is there an estimate of what the increased cost might be? I am broadly in favour of a reorientation towards supporting indigenous industry and developing our universities. This is a strategic political objective on which we need to deliver. We need to wean ourselves off our dependence on foreign direct investment and high-tech large multinational investment.