Dr. Donal de Buitléir:

The property tax is a highly progressive measure and I strongly support its introduction. If one looks at the numbers, property taxes in Ireland are quite low and were I a betting man, they may not always be as low. The most regressive part of the tax system is the excise duty on tobacco, in particular, followed by the excise duty on alcohol. This raises really interesting questions. If one was driven solely by income distribution considerations, one would cut the excise duty on tobacco to zero. I do not think that would be a good idea, but it is something to think about.

As to whether the idea behind the corporation tax rate is a good one, we have been doing it since approximately 1956. When we started, the tax rate for Irish exporters was zero, while the average corporation tax rate in the European Union was 50% and the differential was 50%. We charge 12.5%, while the average rate is in the middle 20s. As a consequence, the differential has moved from 50% to 12.5%. Moreover, my assessment is that the next movement in rates in Europe will be downwards. As Sir Humphrey might say, it would be courageous for a Minister to decide to tamper with it because one simply does not know what the tipping point will be. One can have opinions on it, but-----