Mr. Ronan Hession:

Our initial view is that the base proposed is narrower than our own base. With regard to quantifying this, we have not got as far as being able to put a figure on it. Looking at the analysis provided, which is already in the public domain, the Commission's analysis sees a reduction in corporation tax of 0.14% of GDP. This is in its impact assessment. Overall, the Commission sees it as a marginally positive result because, under its analysis, some buoyancy comes out of that but it also sees a negative impact on corporation tax receipts.

In its publication yesterday, which draws heavily on the earlier analysis carried out by Ernst & Young in 2011, the ESRI sees an impact on foreign direct investment of -4.6% and on corporation tax receipts of -5.7%. When we combine this with the impact of Brexit, it shows an effective output of -1.5%. We take these as useful inputs to our analysis. We will do our own work on it with Revenue and, if necessary, get figures done. It is a very complex proposal with many aspects and we need to go through them to fully assess how we believe it will fully affect corporation tax receipts. The analysis in the Ernst & Young report, the Commission's own analysis and the ESRI is that it would have a negative impact on corporation tax receipts for Ireland. This does not surprise us.