Michael Mulcahy (Dublin South Central, Fianna Fail)

We should accept that this is one of the principal reasons chief executives choose Ireland as a location. If, for example, the company is an American multinational, it can choose to have a certain portion of its income sent back tax free to America and will only pay tax on the income earned in Ireland. I am concerned that we would send the wrong signal to chief executives and leading business people in multinational companies on which we depend for the creation of much of our employment. This is a step we might regret.

A constituent raised with me the matter of the 3% imputed distribution of the value of assets in approved retirement funds. The reason I am a little sceptical about this is that it changes the rules to some extent. As I understand it, certain people saved up money in their retirement funds and have not yet drawn it down. Because they have not drawn it down a 3% tax is now being imposed. I urge the Minister to look carefully at this measure. Those concerned may be treated a little harshly in this case. The provision may be aimed at persons with large amounts of money but it may also apply to those with moderate savings in approved retirement funds. They should not be subject to this 3% tax.

I am delighted Deputy Burton is present because I recall her saying in her reply to the 2003 Budget Statement that the National Pensions Reserve Fund was a failure and a fiasco. It now stands at €13 billion or €14 billion. It grew by over 19% last year and is one of the greatest successes——

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