John Dardis (Progressive Democrats)

I accept that economics is not an exact science but we can say with certainty that the reduction in personal tax rates led to increased revenue and economic activity and that the reduction in capital taxes also led to increased economic activity. I accept the point made by Senator McDowell that wider factors, such as the social partnership, also helped the economy. However, the reduction in personal tax rates was an essential brick in the edifice that created the economic miracle of modern Ireland.

When these arguments began in the late 1980s, there was a universal chorus that if personal tax rates fell, revenue would fall and the services the State provided for its citizens would be drastically affected. The opposite has happened. The reduction in personal tax rates allowed us to create the conditions which give us the capacity to deal with social problems and look after the most vulnerable people. I reject Senator Ryan's proposition that the Progressive Democrats or any other party was interested in looking after the rich. This is not true.