Joan Burton (Dublin West, Labour)

Given that it has undergone renovation to enlarge its capacity as a passenger ship, does the Christina O yacht qualify for tonnage tax? Will the Minister confirm that this has already cost Irish taxpayers €40 million in tax breaks to a consortium of Irish investors, even though it cruises exclusively in the Mediterranean and the Bahamas? The yacht will probably never see Irish waters or an Irish port. Is it one of the four ships to which the Minister referred or has it just happened in recent times?

When introducing this tax break, the former Minister, Mr. McCreevy, tabled an amendment which made it clear that providing ship management services would qualify for tonnage tax. Will the Minister confirm if the yacht Christina O, which has been involved in such an attractive tax avoidance scheme for Irish high-rollers, is included in the four ships to which the Minister referred? I understand the profits calculated for tonnage tax purposes are approximately €50,000 and the total tax paid over a number of years amounted to just €100,000. One Irish shipping company, which I assume qualifies for tonnage tax, reported profits of approximately €25 million. Therefore, if one company has profits of approximately €25 million, the tonnage tax would appear to be a very significant deal for companies in terms of tax foregone. Has the Minister a view on such companies employing crews at wage levels negotiated according to trade union rates and normal pay and working conditions here?

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