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

The ESRI report also acknowledges that there needs to be plans in place that mitigate the effect of an increase in carbon pricing for those particularly who are on fixed income, which is why, budget by budget, we have made changes in the fuel allowance. My recollection is that the changes that we have made have been successful in protecting lower income citizens within our society from the more difficult consequences of an increase in carbon pricing. Data and evidence are also available to show that has happened.

On the Deputy's point about the use of capital allowances and intragroup transfers, I disagree fundamentally with the Deputy in describing them as tax loopholes in any way. That is just a consequence of the fact that we have so many companies located here in Ireland but are managing large businesses that take place in other parts of the world from Ireland. That inevitably means that changes take place to deal with transfer pricing, the transfer of funds from companies within a broader organisation that are part of how larger corporations run their businesses. I accept that the figures are high, but I do not accept the characterisation of them as being in any way tax loopholes. To re-emphasise, all tax expenditures are reviewed every three years.