Mr. John Hogan:

It is more a policy issue.

It is very difficult for us to prescribe a scheme that looks right through to the end point, that is, the pricing that is being charged by particular companies or sectors. We look at the research and development policy and, as the Deputy mentioned the last day, our research and development tax credit is one of the few credits we have in the corporate tax area. I think it was evaluated in 2016. I will confirm with Mr. Hession if that is correct. From our assessment of the effect of the overall tax credit, we were seeing 60% additionality in terms of research and development activity in the State as a result of the availability of the credit. When that is considered in terms of industrial policy, we are complementing where we would like to see our economy going, which is creating high value and well paid employment opportunities for young educated people who are coming from our universities and so on.

To draw the thread from the individual research and development tax credit right down to the pricing policy is quite difficult, however. Even at that, its benefit is that it is a general measure available across the economy, depending on the level of research and development activity undertaken. Compartmentalising it on the basis of particular factors then moves it into an area where it no longer is a general measure and is in the area of state aid, and we are into a completely different conversation then.