Simon Harris (Wicklow, Fine Gael)
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It is more favourable from the investor's point of view but it does not impact negatively on the Irish taxpayer because it allows the investor, and I am sure this will arise later, to avail of the check the box rule in the United States which allows the investor to be taxed on an ongoing basis instead of deferring a tax and being taxed at a higher rate in the US afterwards. The big benefit for the investor is being able to avail of a US tax mechanism called check the box, which is a very transparent mechanism. It is in place in the US system and is something the US system could change at any time. In fairness to Deputy McGrath, he summed up the position very well on Second Stage when he said that this legislation is an attempt to catch up and keep up with our competitors, and that is what we are doing here. I genuinely do not believe that it in any way reduces regulation. It merely moves the administration of the vehicle from the Companies Registration Office to the Central Bank.

The Deputy is right. A number of organisations have promotional material but I am quite proud of that fact because I want to try to attract more corporate funds to this country and to do so we need a vehicle. I know we differ on that politically but that is the rationale behind the legislation.