Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

-----between wealth and income.

As for corporate profits tax, much has been done in recent years to close some of those loopholes, whether it be the double Irish, some of the loopholes and incentives in respect of intellectual property, statelessness or accounting changes. This is why we are recognised by the OECD and others as being compliant and transparent when it comes to our corporation profits tax, notwithstanding what others may say about us. This is why we have seen a very big increase in the take from corporation profits tax this year. We will see another very big one this month when the Exchequer returns come out and we will see this escalate. We are now taking in a lot of money from corporations in corporation profits tax. This is a risk because we cannot assume that this money will be there next year or the year after. Because loopholes have been changed or closed and because of accounting changes, we will probably have a windfall of corporation profits tax this year which may not be there next year or the year after. While some will be busily finding ways to spend this money, as a responsible Government we need to consider the possibility that this narrative about us not collecting a lot in corporation profits tax is not correct. We are collecting a lot, and there is a risk that as corporation profits tax returns continue to escalate, as we continue to take in more and more of it, it could become our new stamp duty. We could be vulnerable in this area. We must be careful not to think that a bumper year of corporation profits tax is something on the back of which we can make five- or ten-year long-term spending commitments. We will not make that mistake, having learned from the mistakes of the past. On Friday we will have the White Paper, which will give the up-to-date calculations on the deficit. While the changes, the projections that Deputy Howlin mentioned will reduce the deficit, this will be counteracted by overspending in other areas, most particularly in health but also in justice and some other areas. We therefore expect to come in bang on the nose in or around a deficit of 0.2% this year, as projected, with the good things being outweighed by overruns in other areas.

I had a chance over lunch to look at the Sinn Féin budget. I promise to study it in more detail.

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