Mr. Seamus Coffey:

-----the net outcome for us is positive because the tax is being collected at 12.5%, whereas the contribution to Europe will be approximately 0.6%. In net terms, we will benefit quite strongly. There are instances where, given how the national income measures used for EU contributions are based on gross measures and tax is paid on a net profit basis, there can be large increases in gross profits that do not translate through to tax receipts. These are leading our EU contributions to be higher. It is an issue relating to the Irish economy. We are well aware of the problems that arise with measures such as gross domestic product. These have now translated into problems with gross national product, and the CSO has tried to step aside some of these issues with its modified measures of national income. When it comes to EU contributions, they are still based on official measures as set out in the internationally agreed standards. If these are distorted, it can lead to distortions in our payments.