Martin Mansergh (Tipperary South, Fianna Fail)

I thank all Senators for contributing to what has been an interesting and constructive debate. I can only take up a few points in the time available.

Senator Twomey asked about the present position of what is called the CCTB, the harmonisation of the corporation tax base as opposed to the base in Europe. The European Commission has indicated it will bring forward a proposal for a directive next year on this issue. This matter has been ongoing for a number of years, in fact during the lifetime of the present Commission. It does not appear to have made a great deal of progress and neither do the background noises from different member states suggest a consensus on it is likely to be reached. In any event, the answer is that the proposal is in gestation and has not been progressed for discussion.

Senator Twomey issued what I took to be a warning about the Croke Park agreement and the need to achieve efficiencies and otherwise. In the words he used, the only option would be forced redundancy or a further drop in income and pay, and this, I believe, reflects a significant strand of opinion in the Fine Gael Party. The Government's position is to the effect that the Croke Park agreement has to deliver.

Senator MacSharry spoke about the higher registration fee per family of €500, which I believe to be a very reasonable compromise in all the circumstances. There are sharply differing views on that subject but the decision arrived at, I believe, will deter very few from participating in third level education.

Senator Shane Ross was right, of course, to refer to the wider background to the budget, but he is very wrong to talk about default. Neither is he prepared, no more than he was last week, to think through any of the consequences of that. The reality is that if we default we will not be able to borrow. If one looks at the Argentinian experience, the only place they have been able to borrow from is Hugo Chavez's Venezuela. That is a perfectly disastrous and defeatist position, and it reflects, of course, the views of the newspaper he is involved with. I am simply flabbergasted by the irresponsibility of that type of contribution which goes on to talk about leaving the eurozone. The reality is we are in a tightly-knit group, which is the eurozone. We do not have the freedom to act unilaterally in ways that will cause a great deal of damage to others. It is easy to come in here and to write in newspapers about what is, in my opinion, an utterly irresponsible option which would have the deepest and most detrimental impact on the welfare of this country.

One can argue that morally, this, that and the other should not be so, but the reality is we have to agree with our partners in the EU. We have chosen to be part of the EU and the eurozone and we do not have the freedom to act unilaterally. There are problems, as referred to by Chancellor Merkel, with dealing with future financial crises based on the outcome of the current one, but these will have to be addressed multilaterally. We do not have the freedom, apart from accepting disastrous consequences for Ireland, of acting unilaterally.

Senator Dan Boyle was correct to talk about the purchasing power of social welfare recipients being maintained and to point out that education spending was rising. Despite the cuts on the capital side, the education spend is still substantial. I am not tempted to say anything much in response to Senator Callely, except that in my opinion, la commedia è finita.