Seán Ardagh (Dublin South Central, Fianna Fail)

-----solicitors and professional people who are not lowering their fees sufficiently. They will lower them if they are in a very competitive situation. In fact, they will more than halve them, just to keep somebody else out. However, that is only in a particular situation. For those already in position, and where they are comfortable, the fees are not being reduced. The Competition Authority needs more powers to ensure that all fees are published, including the hourly rates, so that people may see what value is available in the marketplace. At this point, there is no need for professional firms to reduce their costs and this is deplorable because it is the one centre of costs which can be immediately focused on, and it is restraining cost reductions in many other areas as people say, in effect, "Neither the lawyers or the accountants are reducing their fees". We must see some action in relation to that matter.

From a competitiveness viewpoint, I am pleased to see the exemption from corporation tax for companies in the first three years of business. That is also available for companies which are commencing operations in 2010. A member of the Opposition indicated earlier that this should be applied to private individuals. However, it is only for corporation tax, so that PAYE directors who take a salary out of the company will pay tax on that and do not get an exemption. In the same way, if a profit is made by a sole trader, he or she pays tax on the income taken out of the business. If an individual wants to avail of this and provided there is sufficient income in the business, then it is not difficult to register a company and get it going.

The Minister has introduced a certain fairness to the tax system in relation to the high earners, that was not there previously. The provision regarding the sum of €200,000 is something of a sop to some members of the Labour Party, if Deputy Higgins does not mind me saying so. I cannot see the amount that will be got from that as being very significant, but it is fair, nonetheless, and a start in the right direction. The people this might apply to-----

See this speech in context