David Norris (Independent)

I congratulate my colleagues on the Government side and wish them and the Government well.

With regard to the euro, I have stated previously in the House that the banking problem is a serious one. The whole of Europe is involved; it is not merely an isolated problem for Ireland. In Portugal the Government has collapsed. This creates a significant additional element. The people of Portugal, through their representatives, have refused to accept the stringent measures proposed and, as a result, they may well be faced, through central government, with even harsher regimes.

It is important that the Government appreciates, for example, given the situation in Germany referred to by my colleague, Senator O'Toole, that we have a job to do, not merely at senior political level where it has been done fairly well so far but also in making contact with local political representatives and civil servants there. Listening to some of the stuff coming out of Germany on radio the other day, I was astonished at persons speaking from a reasonably high but uninformed position about the situation, the relationship between the financial systems in Ireland and Germany, and the benefits that accrued through the difficulties being inflicted on the Irish people. The impossibility of the task we are being asked to take on with regard to both bank and sovereign debt simultaneously needs to be brought home to them clearly. I also listened to an interview on television with people in France. It became quite clear that Senator O'Toole is right when he says the rate of corporation tax in France is between 7% and 8%, but is being concealed. A man from Strasbourg admitted that the French tax regime provides tax concessions, rebates and incentives. If they are all added together, it is clear the French corporation tax rate is significantly lower then our rate. We need an overall view. I have said in this House previously that an inevitable centrifugal force is driving Europe towards tax harmonisation. If Europe is to continue to function and the euro is to survive, it is inevitable that tax harmonisation will happen. We need to prepare for it. That is a task for the new Government.

Finally, I ask the new Leader to indicate what level of progress is to be made with Senator Quinn's Bill, which relates to the construction industry. I understand the Leader is an enthusiastic supporter of the Bill. Will the Government support it in the other House? Will the Bill pass into law? The legislation in question marks a significant contribution to Irish political life on the part of Seanad Éireann.