Trevor Ó Clochartaigh (Sinn Fein)

One measure referred to in the pre-budget submission was the introduction of a wealth tax. It is interesting to note that Monsieur Hollande in France has brought up the issue there and he is considering the imposition of a 75% wealth tax for people who have more than €1 million. It is an option that can be considered and implemented but the Government has chosen not to do it here. Another measure we referred to was the introduction of a third rate of income tax at 48%. To suggest there are no alternatives is simply untrue, but it is possible the Government simply has no wish to consider them. I realise the Minister will come back on that point and I appreciate he may have alternatives. Alternatives exist which should be debated.

We live in the real world where people are struggling. Having read the fiscal compact in detail and having studied the arguments on both sides, we do not believe it will solve the real problem. There is a problem with the eurozone at the moment. We honestly believe the fiscal compact will not solve it. Therefore, it will not improve the situation in Ireland or throughout Europe. We believe it will lead to more austerity budgets. We believe the rules imposed on us which would be enshrined in the Constitution if accepted in the referendum will impose a type of fiscal straitjacket for years to come. This will mean that we must cut billions from the economy for several years to come. Many economists on both sides of the argument concur with this view.

Another argument put forward is that we need a stimulus such as the one we suggested. That would involve talking to the European Investment Bank about getting a loan and using money from the National Pensions Reserve Fund, NPRF, to create a jobs stimulus package. I understand the Government is considering that option, and we welcome that.

There is a great deal of misinformation on this issue and it would be welcome if the Minister would clarify a number of questions which are based on some of the comments I heard yesterday and other comments in civil society. If we do not sign up to this treaty, will the Minister clarify that we will remain a member of the European Union because there appears to be confusion about that? We were told yesterday that we will be out of the EU if we do not sign up to this treaty. Many other groups are saying that also. I note correspondence from the Irish Farmers Association which Members may have received also, stating the reason farmers and their families should vote "Yes" to the fiscal treaty. It states regarding a "Yes" vote for the Irish economy and growth, that membership of the EU and a stable euro are critical for exports, jobs, inward investment and economic recovery. The IFA is implying that if we do not vote for the fiscal compact we will be outside the EU in some way.

The Minister might clarify also that if we do not sign up to the fiscal compact whether we will be thrown out of the eurozone. It is our understanding that we will not. We will still be members of the eurozone. An argument being implied, certainly by people on the "Yes" side, is that in some way we will be outside the euro if we vote "No".