Mr. Michael Taft:

No. We do not have a position as such with regard to the next budget. Our hope in putting forward our submission was to point out a number of things. If it is the goal of a low-tax structure to generate investment compared to other European economies, we are doing pretty poorly. If it is the goal of the low-tax regime to generate direct expenditure by companies in the traded sectors - because that is where the tax rate is being directed - we are doing pretty poorly. If the low tax rate is supposed to bring companies that would generate high levels of employee compensation, we are doing pretty poorly. Other countries are doing a lot better. I ask what are they doing better that we are not doing, as they have effective tax rates up to three times ours and they have the same kinds of economic structure relying on exports. In the first instance, the issue is not the effective tax rate. In one sense it does not even matter whether it is the 2% rate on the US multinationals; at the end of the day, whether this committee decides it is a rate of 9% or 11% or 12% or 2%, companies are still doing what they do, whether here in Ireland or through Ireland. Those are the questions the committee needs to consider, but it does need to address the industrial enterprise base of the economy and make sure that is right before looking at issues such as changing tax rates and tax reliefs.