Mr. Conor O'Brien:

I am sure Mr. Taft's figures are correct. However, I am out in the world trying to persuade companies to come to Ireland. The low corporation tax rate is the most significant weapon in our armoury in trying to do this. I come up against competitors from countries such as Switzerland and Singapore, both of which have low rates of corporation tax and which are two of the richest countries in the world. I have not carried out an analysis, but I presume wages, etc., in both jurisdictions are extremely high. There is one example to which I refer in this regard, namely, Northern Ireland.

Northern Ireland, on this island, has had a higher rate of corporation tax. It has had its political troubles but there has been a ceasefire since 1994. We have done better than Northern Ireland in terms of attracting investment during the past 20 years and it is seeking to have the same corporation tax rate as we have because it recognises that it is an aid in bringing in business. If one brings in business and US multinationals and they employ people, take people off the dole and pay them salaries, and income tax is deducted from those salaries and corporation tax is paid over, then it seems that is potentially a win-win situation for Ireland. I accept that whether 12.5% is the rate that optimises the yield to the Exchequer and the return to the economy - or a rate of 15%, 20%, 30% or 40%, or 6% 7% or 10% - is a matter for debate, but I do not think it is obvious that it is the highest rate that necessarily is the right rate. From my experience, in trying to get business in here, the rate that we have is a big selling point.