Ciarán Cannon (Galway East, Fine Gael)

As the Deputy is fully aware, the IDA has been successful in continuing to attract foreign direct investment, FDI, into this country. Last year alone 13,000 jobs were created as a result of its efforts. That occurred through companies consolidating and growing their presence in this country and new companies being attracted to set up. One of the reasons the measures were announced by the Minister for Finance, Deputy Noonan, in the recent budget was arising from significant consultation that took place with the IDA and also some of the ideas emanating from the global economic forum which was held in Dublin Castle in recent months. A number of senior people in the FDI sector in this country pointed out to Government that to make this concession would be most beneficial, not alone in terms of expanding existing FDI presence in this country but also in attracting new operations.

At the time when announcing the tax exemption the Minister, Deputy Noonan, was specific in his reference to it in his speech, that the income that would be exempt from tax would not be exempt from either the universal social charge, USC, or from PRSI. In the Finance Bill it was made clear that the USC would be chargeable on all of the income and what we are doing now is putting the final part of the jigsaw in place in introducing an amendment to ensure that the income is subject to PRSI. That was always the case; there was no wink, wink or change of mind or heart or conflict between the Minister for Social Protection, Deputy Burton, and the Minister for Finance, Deputy Noonan.

Perhaps the Deputy could clarify to which allowance he refers in terms of the €5,000 and then I can respond to him. I am not aware of the allowance he spoke about.

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