Margaret Cox (Fianna Fail)

I find it funny that some Opposition Senators have said that the motion moved by Senator Mansergh is an exercise in back-slapping or self-praise. The motion "urges the Minister for Finance to continue to support a low tax regime". It is obvious that our economy has grown, developed and boomed in recent years because of the low-tax regime. Irish workers, particularly PAYE workers, are taking home more money on a daily and weekly basis than ever before. Those who have created indigenous employment by investing their entrepreneurial efforts in businesses are benefiting from a corporation tax rate of 12.5%, which used to be available only to multinational companies investing in Ireland. The lowering of that bar has helped small Irish service and manufacturing companies to create wealth and employment. It has facilitated the development of an economy that does not depend on globalisation and decisions taken at global headquarters in many parts of the world.

The decision to reduce the level of corporation tax from 50% to 12.5%, or to 10% for manufacturing enterprises, was an effective one. It has provided an interesting model which is being copied throughout Europe. It has been suggested that the Minister should examine those rates, but I do not think he should make any changes. A tax rate of 12.5% for all companies operating in Ireland is a fair one. Small businesses are happy to make profits and to pay their employees and the Government their dues. We are all happy to pay our fair share of taxes.

The motion also "notes that since 1997 the average tax rate for nearly all PAYE workers has fallen every year including the last two years — in no case has it increased." Does the Opposition disagree with that? Does it not want the Government to even out the tax burden? Does it not want the average tax rate to continue to fall? I prefer to pay a lower rate of tax on all my money than to pay a higher rate of tax. If I choose to buy an expensive bottle of wine or to have an expensive meal in a restaurant, I prefer to pay more tax on my disposable income than to pay it as PAYE. I should be allowed to make some decisions in this regard. We need to examine the entire area of taxation. It is not fair if nobody pays equitably — we need to have equity in the tax system.

Opposition Senators have spoken this evening about value for money, for example in respect of education. Would they like the Government to employ fewer special needs assistants? Would they like the additional teachers who have been employed in schools to reduce the pupil-teacher ratio to be made unemployed? Which of the changes in the education system which have resulted from increased public spending would the Opposition like to overturn? Why do Opposition Senators not consider such changes to be value for money?

There are many problems in the health service and many improvements need to be made. Does the Opposition know that state-of-the-art treatment is available in regional centres for people with cardiac problems and cancer?