Mr. John McCarthy:

Let me answer the last question first and then hand over to Ms Weymes. I ask the Deputy to give me time to think about the switch model.

There are obviously a lot of moving variables in this. It is important to stress that with the globalisation we have seen in recent years, some of these things can change at the stroke of a pen. Everything else being equal, we have this bringing onshore of the IP and co-locating it where there are substantive activities. The Minister took an important policy initiative in either the budget for 2013 or the budget for 2014 with the introduction of a knowledge development box with essentially half the corporation tax rate for knowledge created in Ireland. It is part of a trend that is going on elsewhere; I believe the UK, the Netherlands and perhaps some other countries are moving down this road.

Another attractive feature of our corporation tax regime is the research and development tax credit. I am not supposed to talk about policy but I think I can say something briefly on policies that have been implemented. Those two policies will help to further embed the IP in Ireland and help Ireland move up the so-called value-added chain. We have a strong comparative advantage given our investment in third level education, etc., and the high skills attainment of the labour force.

I ask Ms Weymes to respond to the other issue.